PHL Variable policyholders: moratorium on policy benefits ‘inequitable’
January 28, 2025 by John Hilton
A pair of PHL Variable Insurance Co. policyholders are asking a Connecticut court to reconsider a $300,000 moratorium on benefits created by the Department of Insurance.
Dana Montana and Dennis DeGori filed a motion to intervene Friday with the Superior Court for the Judicial District of Hartford. Both own Phoenix Protector Universal Life II policies with death benefits well in excess of the $300,000 limit.
Wink’s Moore on the Market: This piece is about a lawsuit regarding a couple of business policies underwritten on PHL Variable Insurance Co paper.
Sounds like the insureds feel they aren’t being treated equitably, as they are likely to get $300,000, instead of their multi-million dollar death benefits.
Their argument is that people with death benefits of $300,000 or less will receive their full death benefit amount, under the guaranty fund. Those with greater death benefits will receive a “diminution in their benefit.”
I don’t know how this will shake out, but am left feeling a TON of empathy for the policyholders. I would be sick if this happened to me.
How do you explain an insurance company failure to your clients?!? -sjm
