Posted by (American Life Insurance Guide 2019/06/18 讯）伊利诺伊州联邦法官在6月10日星期五的早些时候，批准了一项和解协议。这项和解协议将终止对 Global Atlantic Accordia Insurance CompanyUnilateral illegal cancellationSome policyholders’ life insurance policies have "continuously guaranteed promise guarantee" litigation.In the settlement agreement, the payment of attorney's fees alone reached $220 million.
The termination of the insurance policy triggers litigation?
In 2017, 4 Accordia InsuranceThe company's customers claimed that their policy commitments were "purposely" suspended.
The insurance policies of these customers were previously covered by Athene InsuranceThe company issues and promises to guarantee, but after being transferred to Accordia Insurance Company, the premium electronic payment service provider,Alliance One Services Inc. does not automatically withdraw the premium from the consumer's account and transfer it to the policy account.Therefore, the four Accordia insurance company's customers claimed that the insurance company and the payment company had caused their insurance policies to be "discontinued" or "cancelled."
The judge’s preliminary approval order held that the parties should negotiate "provide customers with injunctive relief and monetary losses on the basis of claims" and "are within a reasonable range and worthy of the possibility of final approval."
The reason for the "litigation"
According to consumer lawsuit information, in 2013, Athene USA, headquartered in West Des Moines, Iowa, sold the life insurance business of its Athene Annuity to Accordia, But Athene continued to manage these policies, and it was not until 2015 that Accordia took over.
In this process, a series of problems arose across the country.Before the American Life Insurance Guide ©️News report中,California Insurance BureauJust pointed out that since the beginning of 2016, the department has received more than 100 copies fromConsumer complaints.The complaint stated that Accordia relied on a third-party company to manage its life insurance policies, and there was a "compatibility issue" that prevented the policy from being converted into the management system of the third-party company.
The final development
The Illinois court will hold a final approval hearing on the proposed settlement agreement on December 2019, 12.American Life Insurance GuideWill continue to follow up the report and pay attention to the further development of the situation.
Accordia Life Insurance Company, established in Des Moines, Iowa in 2014, is Global Atlantic (Global Atlantic Financial Group) Its subsidiaries.
(Update November 2020:The California Insurance Bureau opposes the settlement and raises multiple questions on the Global Atlantic (Accordia) group termination case)
(source: Law360 Reported by the editor of American Life Insurance Guide)
