Life Insurance Company of the Southwest hit with renewed lawsuit over ‘fraudulent sham’ index
February 3, 2026 by Kenneth Araullo
Life Insurance Company of the Southwest, an affiliate of National Life Insurance Co., is facing a renewed lawsuit over allegations of misleading sales practices tied to indexed universal life products.
The complaint, filed in the United States District Court for Vermont, claims the insurer provided materials that failed to accurately represent the index used in an interest crediting strategy. Plaintiffs allege the strategy was used to allocate accumulated value in their policies.
Wink’s Moore on the Market: Is the Life Insurance Company of the Suthwest U.S. Pacesetter Index a “fraudulent scam?”
That’s what some are alleging.
Interesting that this policy isn’t even two years old.
So, she’s suing because she got one credit of zero percent?
Sunds like a serious case of not setting expectations accordingly… -sjm
