Since this important change in ERISA jurisprudence, we have noticed a significant increase in ERISA breach of fiduciary duty claims against employers alleging errors in the administration of life insurance plans in particular. Many such cases seem to involve conversion, porting, and/or continuation of coverage provisions. (Hereafter, “conversion” provisions.) Plaintiffs are blaming denied life claims on their employers – for instance, in failing to provide accurate or timely information about conversion issues that allegedly caused the rejection of an application for conversion. As even the Chief Justice recognizes, plan administration mistakes – sooner or later – are inevitable. Given this inevitability, employers – especially small to medium-sized employers – may have cause to reconsider whether the liability risks outweigh the value of providing life insurance benefit plans to their employees. … [Read more...] about Are Employee Life Insurance Benefit Plans Worth the Risk of Litigation After CIGNA Corp. v. Amara?
3 million life insurance policy cost
Prudential stopped selling long-term care insurance in 2012, but still faces substantial costs from old policies. The insurer no longer considers morbidity improvement when calculating long-term care reserves, Chief Financial Officer Robert Falzon told analysts in August. … [Read more...] about Long-term care policies loom over U.S. life insurance results
TRIPRA’s expiration is of particular significance for businesses and organizations that are required to maintain terrorism insurance under financing or lending agreements. Such entities may include those in the hotel, tourism, sporting and concert industries, large commercial and industrial centers such as high-rise office buildings and major shopping centers, commercial real estate developers, universities, amusement parks and other entertainment attractions. Foregoing terrorism risk coverage may not be an option for these entities. … [Read more...] about Policyholders Face Uncertainty after Lapse of Terrorism Risk Insurance Program
Since purchasing the polices, Plaintiffs allege that the State of California sued the Provencios and Integrity Retirement Partners, LLC for “engaging in the very fraudulent scheme that duped Plaintiffs.” Moreover, Plaintiffs assert that they were also named as defendants in the California action, in which the State of California “sought to recover from Plaintiffs any money they received from Provencios and IRP as proceeds or traceable to the proceeds of the fraudulent scheme that the Provencios and IRP perpetuated on investors, despite the fact that Plaintiffs were also victims.” … [Read more...] about Lawsuit Regarding Alleged Fraudulent Life Settlement Scheme
According to the complaint, Plaintiffs sought to cancel the policy, but Global One informed them that the policy could not be cancelled without penalties. Plaintiffs further allege that they surrendered the policy, but due to the Defendants’ breach of contract, they were required to treat the policy as a “Modified Endowment Contract, with its attendant negative tax consequences.” … [Read more...] about CDA Wealth Consulting v. Global One Re: Insurance Litigation