USAA Life Insurance Class Action Settles for $90 Million

October 01, 2021

Miller Schirger LLC and co-counsel Stueve Siegel Hanson LLP have settled a nationwide class action lawsuit against USAA Life Insurance Company (USAA) over alleged life insurance policy overcharges. The settlement was approved by the court on August 26, 2021 and provides that USAA will pay $90 million (less fees and expenses) in cash compensation to approximately 110,000 policyholders who own or owned a UL1, UL2, UL3, or UL4 life insurance policy sold and administered by USAA.

The case is Roy Spegele vs. USAA Life Insurance Company and was filed in September 2017 in the Western District of Texas (San Antonio) on behalf of Roy Spegele and other individuals who own or owned the UL1, UL2, UL3, or UL4 policy. The suit alleged that USAA breached the policies by overcharging policyholders through cost of insurance and expense charges within the policies and failed to reduce certain charges despite improving expectations of future mortality, causing the policies to lose value and in many cases lapse, leaving many without life insurance. USAA denied all liability or wrongdoing.

Miller Schirger has a successful record prosecuting class action cases alleging policy overcharges against the life insurance industry. In June 2018, Miller Schirger obtained a jury verdict of $34.3 million on behalf of a Missouri class of policyholders against State Farm Life Insurance Company. Trial was held in the Western District of Missouri, Central Division before the Honorable Judge Nanette Laughrey. In May 2018, Miller Schirger announced that a California court granted final approval of a nationwide class action settlement in the amount of $59.75 million against John Hancock Life Insurance Company (U.S.A.). In March 2016, Miller Schirger announced that an Indiana court granted final approval of a nationwide class action settlement valued at approximately $2.25 billion against The Lincoln National Life Insurance Company.

Miller Schirger LLC is a Kansas City, Missouri, based law firm focused on resolving complex disputes on behalf of businesses and individuals nationwide.  The firm has a proven track record of success representing plaintiffs and defendants in state and federal trial and appellate courts, before administrative and regulatory tribunals, and in arbitration and other alternative dispute resolution proceedings nationwide.

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