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"Cost of Insurance" Lawsuits Trending Across the Country

Policyholders across the country are beginning to feel betrayed by their insurance providers - and an ever-increasing number of them are taking action. The problem is, while many of these people have legitimate complaints and claims, they are not all seeing success within the court room. If you feel your claim was denied unjustely, or you are facing unjustified premium increases, working with an expert civil litigation attorney may be the only option for helping you get relief through the courts.

Recent noteworthy lawsuits involving cost of insurance

One of the most recent cases is Feller et al. v. Transamerica Life Insurance Company, and it was highlighted in an article published on InvestmentNews. The plaintiffs are arguing that Transamerica Life Insurance Company has unjustly raised the rates of the premiums on their universal life insurance policies.

These policies were taken out decades ago, and the rates have never spiked this high before. A steady stream of cost increases began in the summer of 2015, and the plaintiffs decided that they had enough of the insurance company wrongly increasing rates. In their lawsuit plaintiffs claim the increases were not in compliance with the policy, which they had agreed upon when they purchased it.

The charges weren't just a small increase in the amount that they had to pay each month in order to maintain the policy. The plaintiffs allege that the increases were upwards of 38 percent - a more significant jump than they had experienced in the two decades prior.

In its defense of the annual increases, Transamerica Life Insurance Company claims these rate hikes were within their bounds as an insurance provider and were permissible within the outlines of the policy. In addition, the company states that it frequently communicates with its customers and provides them with updates in advance about any changes to their monthly premiums. A spokesperson for the company explained in the article published on InvestmentNews that the rate increases were the result of the company's forecasts for the cost of future coverage for the current policy holders.

This is just one of the recent "cost of insurance" lawsuits that has occurred recently, but the increase in these suits can signify broader outlying issues within the insurance industry.

Why are these lawsuits increasing?

Most people may not realize how much money insurance companies invest to increase their profits and cash flow beyond the amount earned in premium payments. With interests rates generally remaining low over the past several years, insurance fianancial officers have had to make adjustments for their poor returns on investments. When there are low interest rates in place, insurance companies struggle to pay the claims to their policy holders, because many of these policy holders purchased their contracts when there were higher interest rates in place.

Unfortunately, the results of these class action suits vary greatly, and there is no consistency amongst the rulings. This makes it difficult for policy holders to plan when they are crafting their lawsuit against the insurance companies, and highlights the importance of working with an expert civil litigation attorney for this type of lawsuit.

Your civil litigation attorney should have the experience necessary to evaluate the specific language of the insurance policy, as well as look to the history of the judgments made within the local courtroom, in order to predict the success of this type of lawsuit. Inconsistent rulings and verdicts are common with cost of insurance lawsuits, despite their increasing prevalence on courtroom dockets. 

How can a civil litigation attorney help?

A civil litigation attorney can help you craft a lawsuit of this complexity that gives you the best chance of success. By providing you with insight into your insurance policy and giving you background on these types of lawsuits in your area, you will be able to make the right decisions for yourself and for your family. Bringing a lawsuit against an insurance company is never an easy task, and it's certainly not a challenge that you want to undertake on your own. The right attorney with an expertise in civil law can help you get the results that you deserve.

Insurance companies and their licensed agents are often less-than-truthful with their customers. With the right civil litigation attorney on your side, you can fight back against the insurance company and stand up for yourself as a customer and policyholder. The system is made to be cumbersome and confusing for a reason, which is why you need an experienced attorney on your side to help you navigate through the nuances of your insurance policy and advocate for your rights as well as your benefits.

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