State claims added to amended lawsuit over National Life IUL illustrations
June 25, 2025 by John Hilton
An Indiana woman suing NLV Financial Corp. and two life insurance subsidiaries over a 2023 indexed universal life policy that returned 0% is tacking on state claims in an amended lawsuit.
Sanya Virani claims the IUL relies on back-tested historical performance that does not match reality and is “a fraudulent sham.” She initially filed suit Oct. 31 in the U.S. District Court for the District of Vermont, where NLV is headquartered.
Wink’s Moore on the Market: About that lawsuit based on indexed life hybrid indices-
The policyholder received 0% credited interest on her first policy anniversary, after allocating 100% of her premiums to a hybrid index.
Indexed life can earn as little as 0% in any given year; that is a well-known fact.
However, the claims in this case are centered around an illustration, which showed backcasted returns for an index that didn’t exist until 2021; not even two years before this contract was issued.
What is interesting is that this class action lawsuit was filed just 40 days after the policyholder’s first policy anniversary. Seems like the policyholder was likely working with an attorney prior to that first policy anniversary…
The close to this article is the clincher though:
“Indeed, if ‘historical’ Illustrations have no value as a ‘representation of past or future performance’ of crediting rates, it is logical to question why they are provided to consumers.”
Indeed.
Thanks for the update on this case, John Hilton at InsuranceNewsNet! -sjm
