On September 23, 2020, the United States District Court for the Western District of Texas certified a nationwide class in an action against USAA Life Insurance Company. The products at issue are Universal Life 3 and/or Universal Life 4 life insurance policies issued or administered by USAA Life Insurance Company that were active as of March 1999.
Plaintiffs allege that policyholders have been overcharged by USAA Life Insurance Company through cost of insurance and administrative charges within the policies, that USAA Life Insurance Company failed to reduce cost of insurance charges despite improving expectations of future mortality, and that USAA Life Insurance Company committed conversion of policyholder money, thereby engaging in conduct that Plaintiffs allege is unlawful and in breach of their policies.
The case is Roy Spegele vs. USAA Life Insurance Company and the plaintiffs are represented by Miller Schirger, Stueve Siegel Hanson and Girard Sharp. A copy of Judge Orlando L. Garcia’s Order granting class certification can be read <here>.
Miller Schirger has a successful record prosecuting class action cases alleging policy overcharges against the life insurance industry. Most recently, in June 2018, a jury awarded $34.3 million to State Farm Life Insurance policyholders at a class-action trial in Missouri which was affirmed on appeal in June 2020.In May 2018, a California Court approved a $59.75 million nationwide class action settlement against John Hancock Life Insurance Company (U.S.A.). In 2016, an Indiana Court granted final approval of a class action settlement valued at approximately $2.25 billion against The Lincoln National Life Insurance Company.