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Insurance Litigation Contract Terms Life Insurance

Maynard Nexsen

Can ERISA Plans Avoid California Insurance Code Section 10110.6 with Choice-of-Law Provisions?

Maynard Nexsen on

The Ninth Circuit is considering the enforceability of a choice of law provision in an ERISA plan in William White v. Guardian Life Insurance Company, et al., Case No. 24-2681, appeal pending from the United States District...more

Carlton Fields

Insurer Must Consider “Expectations of Future Mortality Experience” When Reassessing, Redetermining, and Changing COI Rates

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In Advance Trust & Life Escrow Services, LTA v. Protective Life Insurance Co. (Mar. 2, 2024), the Eleventh Circuit Court of Appeals affirmed in part and reversed in part the district court’s dismissal of breach of contract...more

Carlton Fields

Second Circuit Opens Door to Lawsuits Based on Contract Violating 1940 Act

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The Second Circuit has decided that Section 47(b) of the Investment Company Act of 1940 provides a private right of action for rescission of a contract that violates any provision of the 1940 Act or any rule or order...more

Carlton Fields

Class Action Roundup

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McClendon v. North Carolina Mutual Life Insurance Co. (M.D. Tenn. 2019) - In McClendon, the plaintiff’s mother purchased a whole life insurance policy to insure the plaintiff’s brother, and subsequently took out a loan on...more

Orrick, Herrington & Sutcliffe LLP

State Farm Ruling Opens Door for Conversion Claims Against Insurers Who Impose Unlawful Cost of Insurance Rate Increases

On August 19, 2019 a federal judge in the Northern District of California denied State Farm Life Insurance Company’s (State Farm) motion for summary judgment on Plaintiff Elizabeth A. Bally’s claims for conversion and breach...more

Carlton Fields

Life Insurer Permitted to Adjust Policy Proceeds Pursuant to Misstatement-of-Age Provision

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In Jackson National Life Insurance Co. v. Dobbins, the Fifth Circuit Court of Appeals affirmed the district court’s grant of summary judgment for an insurer in an interpleader action, which resolved, among other things,...more

Carlton Fields

The Ninth Circuit Reverses California District Court’s Ruling Vacating Arbitration Award Based on Evident Partiality

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In sum, in 2009, plaintiffs American Brokerage Network and its owner Cung Thai (collectively, “ABN”) and American General Life and Accident Insurance Company (“AGLA”), a subsidiary of American International Group, Inc....more

Carlton Fields

Second Circuit Affirms Summary Judgment for Bona Fide Purchaser in STOLI Action

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In a June 8, ruling in AEI Life v. Lincoln Benefit Life Co., the Second Circuit upheld the District Court for the Eastern District of New York’s application of New York’s two-year incontestability period to a STOLI policy....more

Carlton Fields

COI Litigation Update

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Life insurers that defend challenges to their exercises of discretion to adjust cost of insurance (COI) rates on universal life insurance policies continue to seek opportunities to narrow the scope of the claims through early...more

Carlton Fields

SDNY Ruling Narrows Claims in COI Suit

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In EFG Bank AG, Cayman Branch v. AXA and The Duffy 2004 LLC v. AXA, in a February 14 ruling, AXA Equitable Life Insurance Company earned a sweet victory on its motion for partial dismissal of the complaints in two...more

Carlton Fields

COI Litigation Review – Early Dismissals Remain Elusive in Rate Increase Actions

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Suits challenging insurers’ cost of insurance (COI) rate increases continue to generate much activity. In recent months, this activity has included transfers, consolidations, several actions that are inching closer to...more

Carlton Fields

Cost of Insurance Litigation Review

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As illustrated by the two examples here, recent decisions on preliminary motions seeking to dispose of or narrow the scope of claims challenging COI rate determinations suggest the industry may be enmeshed in litigation for...more

Carlton Fields

New Wave of COI Rate Increase Lawsuits Hits the Industry

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Historically, increases to cost of insurance (COI) rates on universal life (UL) policies have been met with legal challenges from policyholders, and sometimes, regulatory opposition spurred by policyholder complaints. The...more

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