The Colorado federal court concluded last summer, in Teets v. Great-West Life & Ann. Ins. Co., that an insurer could be subject to ERISA liability for receiving unreasonable compensation in connection with a stable value...more
Plaintiffs' lawyers have been challenging cost-of-insurance (COI) charges for years, with mixed results. The following outline reviews the most recent flurry of cases. ...more
4/6/2016
/ AXA Equitable Life ,
Captive Insurance Company ,
Class Action ,
COI Rates ,
Contract Terms ,
Disparate Impact ,
Elder Abuse ,
Excessive Fees ,
Insurance Industry ,
Life Insurance ,
Reinsurance
WilmerHale Partner Charles Platt, a leading commercial litigator who is recognized nationally for his work defending financial services and insurance companies, periodically drafts legal news alerts for clients about the life...more
3/29/2016
/ Annuities ,
Captive Insurance Company ,
Class Action ,
COI Rates ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fiduciary Duty ,
Insurance Industry ,
Investment Company Act of 1940 ,
Life Insurance ,
Proposed Regulation ,
Reinsurance ,
Retirement Plan Providers
The complaint against Banner Life combines the "captive reinsurance" class action claims brought last year with the cost-of-insurance (COI) class action claims that are now popping up.
Instead of standing on their own,...more
Class action plaintiffs have long claimed that insurance companies may become ERISA fiduciaries when offering variable annuity products and funds to 401(k) plans.
The Colorado federal court decision in Teets v. Great...more
The 8th Circuit's recent decision on "excessive fees" under ERISA, titled McCaffree v. Principal Life, is instructive for three reasons: -
First, it adds to the line of circuit court precedents holding that an insurance...more
There have been several new class actions filed recently challenging “shadow insurance” transactions between life insurance companies and their “captive reinsurers.” Three of those class actions are in federal court in New...more
1/25/2016
/ Annuities ,
AXA Equitable Life ,
Captive Insurance Company ,
Class Action ,
Insurance Industry ,
Life Insurance ,
MetLife ,
Misrepresentation ,
NAIC ,
Reinsurance ,
RICO
The class action complaint titled Bell v. Anthem, Inc., et al. (S.D. Indiana) raises a number of novel ERISA allegations that could be a preview of the future, especially if the DOL fiduciary rule is adopted this...more
1/5/2016
/ 401k ,
Anthem Insurance ,
Breach of Duty ,
Class Action ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fiduciary Duty ,
Insurance Industry ,
Retirement Plan ,
Retirement Plan Providers
The trend of excessive fee decisions relating to the insurance industry continues: -
..In re Davis New York Venture Fund Fee Litigation—The SDNY's opinion denying the motion to dismiss is notable for two...more
The U.S. Court of Appeals for the Second Circuit recently ruled that the “common interest” doctrine protects legal and tax liability analysis prepared for a client and subsequently shared with a consortium of banks providing...more
Plaintiffs lawyers have been challenging cost of insurance (COI) charges for years, with mixed success. The recent decision by the Indiana Court of Appeals, titled Lincoln National Ins. Co. v. Bezich, is the latest in this...more
A recent decision on "excessive fees," titled Santomenno v. Transamerica Life (C.D. Cal.), supports an even broader theory of ERISA liability than the "sub-advisor" claims I have previously reviewed, but it restricts that...more
Below is an update on the "excessive fee" cases under section 36(b) of the Investment Company Act of 1940.
Most of these complaints are now proceeding on the "sub-adviser" theory: that annuity contract-holders pay...more
9/8/2015
/ Affiliates ,
Annuities ,
AXA Equitable Life ,
Conflicts of Interest ,
Department of Labor (DOL) ,
Excessive Fees ,
Hartford Life and Accident Insurance Company ,
Insurance Industry ,
Investment Adviser ,
Investment Company Act of 1940 ,
Retirement Plan ,
State Farm
The August 2015 decision from the 9th Circuit, titled Eller v. Equitrust Life Ins. Co, provides helpful precedent for the defense of annuity sales practice cases.
Plaintiff Eller brought a RICO class action alleging,...more