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Rules of Court, rule 9.40, subds. Its annuities and other products are sold by independent financial professionals who associate with brokerage firms, banks, financial planning firms, and other financial institutions. There is no denying the notion that PacLife has one of the most complex indexed universal life insurance products on the market. Not that I want to discount the plaintiffs' potential suffering, I simply feel that the evidence provided in the complaint falls short of proving wrongdoing. I have already told friends how wonderful he is. (Complaint, 82-83.) hhR#*ehtL&%v B:eE\NG j0:/%D'Zldh+)a,O/vJtDAMcY)tw~Y cOY 1avP Qb{!j$L8l=MPa"& cN0. Nevertheless, the time period is different for each set of claims. 3:21-cv-01444-BHH Opinion and Order This matter is before the Court on Defendant Pacific Life Insurance Company's ("Pacific Life") motion to dismiss the second amended complaint pursuant to Federal Rule of Civil Procedure 12(b)(6).1 (ECF No. Union Pacific faces wave of lawsuits. The complaint mentions policy blending by noting that: PacLife offers agents higher commissionsup to three times higherto steer customers into a PDX Policy with all or a substantial portion of the face amount allocated to base coverage, even the policy charges would be far less under a blended structure. Case Number: *******7878 Hearing Date: December 8, 2021 Dept: 39. This was not disclosed to the policyholder. This varies from other life insurance policies with either fixed or variable interest rates. (Ibid. The lawsuit alleged, among other things, that Pacific representatives told potential customers that a single payment would cover all premiums, that it sold life-insurance policies as investments, and that it replaced or rolled over certain policies without policy-holders knowledge. According to the company, these policies offer , However, legal allegations against the company indicate that these promises may be false. I think you are very correct in the context of an agent motivated to write more permanent life insurance per the budget/death benefit need, but the context of this discussion was blending used to maximize cash building potential of a policy. This blog has done nothing to educate anybody. We and our partners use cookies to Store and/or access information on a device. Since the early 1990s, Gary Marenzi and Rebecca Prange have relied on Daniel M. Silverman (Silverman) as their financial advisor and life insurance agent. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. ), Finally, the Court cannot conclude that there is any overlap in the damages between the two sets of claims, as the allegations make clear that each set of damages stem from different transactions. In 2011, Silverman sold Gary Marenzi and Rebecca Prange a single premium policy from Mutual of Omaha, which was owned by the Marenzi Insurance Trust Number Three. ", "Good intelligent attorneys who never miss a beat. hbbd```b``SA$"A$s?X L*zMl*XLjI strategy, or any other savings/wealth accumulation plan there are certainly shade of necessity for blending as a crucial component of the plan implementation. The mere fact that both sets of claims may involve the same legal issue does not excuse Plaintiffs from this requirement. Blending exists as a way to manipulate a policy's design and augment the cash value achievable in the policy. (Ibid.) (Ibid.) Finally, one place to get all the court documents we need. Is it suitable to sell someone a life insurance contract that lacks the features known to enhance cash value when you the agent know cash value accumulation is the primary goal? The largest life insurance companies include MetLife, Prudential Financial, New York Life, Lincoln Financial, Northwestern Mutual and AIG. 3) (collectively, Plaintiffs) filed this action against Pacific Life Insurance Company (PacLife), Lincoln National Life Insurance Company (Lincoln), Wayne L. Weaver, TFP Funding Partners, LLC, Daniel M. Silverman, and United of Omaha Life Insurance Company (United Omaha) (collectively, Defendants). by Defendant Pacific Life Insurance Company ("PacLife") to sell its "Pacific Discovery Xelerator IUL" ("PDX") indexed universal life insurance policies to California residents. In other words, Plaintiffs allege that their insurance plan involved keeping the United Omaha policy, because it purportedly had been paid-up for 20 years. Plaintiffs argue that they were forced to surrender their polices from PacLife and Lincoln, forcing them to pay more for substitute coverage, i.e., a United Omaha policy. (Ibid.) By contrast, the second set of claims stem from allegations that Silverman and United Omaha quoted a price for a life insurance policy but did not disclose the premium depended upon Gary Marenzi and Rebecca Prange having a particular insurance rating. On June 28, 2001, Rebecca Prange established the Marenzi Insurance Trust Number Two for the purpose of holding title to one or more life insurance policies on her life. It's a weird concept for universal life insurance (since it's effectively term insurance already).if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'theinsuranceproblog_com-large-leaderboard-2','ezslot_6',161,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-large-leaderboard-2-0'); Plaintiff Hong Li and her family met with agent Tiffany Xu in 2018. 2021-04-28, Harris County District Courts | Contract | However, my policy is a Universal Life Policy. With an IUL, interest rates can increase significantly much higher than fixed interest rates when the linked market index performs well. The plaintiffs are alleging misleading marketing materials and excessive policy charges. By now you may have heard about a class action lawsuit filed in Orange County last week against Pacific Life. Any non-guaranteed element in any policy is necessarily a question mark. You might not like it, and thats completely fine. Absent that rating, United Omaha would charge a greater premium. This is the first I'm aware of blending showing up in an official legal complaint against a life insurer, and it introduces something I have long wondered about the life insurance industry and the marketplace for cash value-focused life insurance sales. I wrote Financial Recovery in 1980 and the industry invented Universal Life as an end-run around cost disclosure. Defendants Counsel shall provide notice and file proof of such with the Court. Per California Rules of Court, rule 9.40, attorneys who are licensed to practice and in good standing in other states may, upon court approval, appear as counsel pro hac vice in a pending case if an active member of the State Bar of California also appears as counsel of record. How can I get in touch with you to join the law suit? ? An additional $35 million is set aside for policy-holders with special circumstances, Parry said. stream According to the company, these policies offer protection for your loved ones, tax-deferred growth potential, tax-free supplemental income potential, and other benefits. All you need to know about this case is that a after making two installments of $500,000 into an IUL, a policyholder ended up with a surrender value of under $400,000, having borrowed or withdrawn nothing. Certain plaintiffs (Marenzi, Rebecca Prange, and Wesley Prange) assert a Second Cause of Action with four separate counts (for negligence misrepresentation, breach of contract, professional negligence, and declaratory relief) against United Omaha and Daniel Silverman. Given the makeup of the life insurance market in terms of annual sales (overwhelmingly cash accumulation product majority), Im dubious to your claim that anything wore thin with the public decades ago. A IUL policys cash value is the amount of money that a policy generates through interest revenue. ), In reliance on Weavers representations, Gary Marenzi and Rebecca Prange directed the trustees of the trusts to proceed with the applications for new $20 million PacLife policies, one on Marenzi and one on Prange. A tenured Pacific University professor is suing the school for $1.3 million, claiming he was illegally ousted from his position over comments he made about gender and race while teaching. 2 and No. Each attorney at our firm has experience representing investors in securities arbitration claims and/or lawsuits. SSEK Law Firm believes that filing your own individual FINRA arbitration claim, rather than joining a class action, increases your chances for maximum recovery. Our attorneys and staff have more than 100 years of combined experience in the securities industry and in securities law. This isnt just an IUL issue. {5G X0cxM]lWo^&e}5M&ui:)X|;m{iC0Y\w&. According to the agreement, Pacific will pay $49.4 million to add to the value of existing policies, and offer another $32 million worth of insurance to members whose policies have expired. It was filed by a law firm out of Phoenix with a long track record of class action suits in life insurance. ", "My experience with Ryan Cook has been very positive. Now, PacLife moves to compel further responses to form interrogatories, special interrogatories, and requests for production of documents that were served in December 2021. Proc. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. expected to be mailed out. Agent Xu recommended Li buy a PacLife PDX policy designed to accept five $500,000 annual payments. (Id., 31.) Not Hollywood, not L.A., not the country, Davids Bridal files for bankruptcy protection, may close all stores, Vidiots returns: L.A. institution reveals opening date for new movie theater, video store, Stocks drift higher as earnings season kicks into gear, Quiet luxury: No flash, no logos, but big-time style. PacLife issued a $20 million policy on Gary Marenzi, but declined to approve Rebecca Prange. (Ibid.) Inversely, when the market is not performing well, interest rates can be extremely low. How, you ask? Top Class Actions is a legal news source Proc., ; 452.) All Rights Reserved. (Ibid.) Plaintiffs Gary Marenzi, Rebecca Prange, Gregory Prange (as trustee of the Marenzi Insurance Trust No. This is not a matter of failing to illustrate the worse case scenario as someone suggested. We use cookies to improve functionality and performance, enhance user experience, and provide tailored content. The 2005 lawsuit Please let me know as soon as possible. Nevertheless, section 379 still requires claims arising out of the same transaction, or series of transactions or occurrences. (Code Civ. In 2008, SWS Group agreed to buy M.L. Based upon the foregoing, the Court grants the motion and orders Plaintiffs to produce verified responses, without objections, within thirty (30) days, to the extent they have not done so already. These and other securities firm subsidiaries ran under Pacific Select Group until March 2007 when LPL Financial Services (LPLA) acquired Mutual Service Corporation, Associated Financial Group, and Waterstone Financial Group. (Id., 26.) Though the lawsuit Marriott (NASDAQ: MAR) filed in September is ongoing, the ruling means that Pacific Life will have to uphold its contractual obligations, including providing working. Learn more about the cookies we use. Plaintiff alleges the following on information and belief, except for those allegations relating to Plaintiff, which are alleged on personal knowledge. DocketComplaint; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. 908 0 obj <> endobj If you make a purchase using The complaint spends several pages building a case to define PacLife's character.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'theinsuranceproblog_com-box-4','ezslot_3',133,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-box-4-0'); It also mentions another aspect of PacLife's product that touches on a very interesting subject. Originally called Pacific Mutual Life, in 1997, the company changed its name to Pacific Life Insurance Company (PLIC) and adopted the humpback whale as its logo. Pacific Asset Management, which now concentrates on corporate credit securities, was created. 63D^fgI V`~;`v%&0LYl 70 || That said, I do have some additional thoughts on what the plaintiffs' legal team might have in their possession that could be bad news for PacLife, and potentially bad news for the insurance industry as a whole.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'theinsuranceproblog_com-medrectangle-4','ezslot_2',158,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-medrectangle-4-0'); At the core of this lawsuit are PacLife's PDX Indexed Universal Life Insurance policy and its extremely obtuse multiplier bonus. The policy claimed to use a 6% which in reality was 24% by dint of a 4x multiplier. Weaver represented that they would pay interest on the loan during the first year but nothing more out-of-pocket afterwards. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. 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