National Life Accused of Racketeering in IUL Lawsuit
November 13, 2024 by Warren S. Hersch
National Life certainly isn’t the first carrier to be sued for alleged misrepresentations in the sale of an indexed universal life insurance policy, but it may be the first one facing a lawsuit that claims the conduct amounted to racketeering.
Click HERE to read the full story via LifeAnnuitySpecialist
Wink’s Moore on the Market: I just learned about the first class action lawsuit I’ve seen on hybrid indexes on INDEXED LIFE.
We’ve seen a handful of these lawsuits regarding indexed annuities, but this time the suit concerns the life insurance products.
It bears noting that while 28.6% of all indexed annuity allocations ($120 B market) are made to a hybrid index option, 31.9% of indexed life is allocated as such ($3 B market).
The lawsuit alleges that the “historical performance” in the illustration was “made up” and was therefore part of a “fraudulent sham.”
This suit goes further to suggest that the insurance company cherry-picked the backcasted data.
(I wonder how often THAT is happening?)
Also interesting? The accusation that this insurance company was racketeering. YES- they got a RICO charge.
-sjm
