Judge denies PacLife motion to dismiss lawsuit over IUL illustration
January 29, 2024 by John Hilton
A judge denied a motion Wednesday by Pacific Life to dismiss a lawsuit brought by a Washington couple dissatisfied with a PDX indexed universal life policy.
The lawsuit – filed in U.S. District Court for the District of Washington – is another case involving controversial IUL illustrations. Simona G. Marie and Thomas Lewis, from Richland, Wash., initially filed a lawsuit June 27 against PacLife, Harding Financial Partners and Andrew Brown, the producer who sold them a PacLife PDX life insurance policy.
Wink’s Moore on the Market: And this is the problem we get when people are sold indexed life as an investment; they think they can cash it out and get their premiums paid plus interest back.
I don’t empathize with the litigants on this case though.
Pacific Life is selling LIFE INSURANCE. The purchasers should have read the contract.
Now, I must contend that the illustrations for most IULs are unreasonable. However, this product was surrendered while surrender charges still existed on the contract! And they modified their premium payments, from what was illustrated.
“Marie later decided to pay only half of the total premiums, and nevertheless expected the Policy to perform precisely as originally illustrated.”