Posted by (American Life Insurance Guide Network 2020/01/29 Orange County News) — California Insurance Bureau intends to block Accordia(Global Atlantic) A settlement was reached between the insurance company and the policyholder who filed a group action.The California Insurance Bureau believes that the terms of the settlement are ambiguous and will interrupt the California Insurance Bureau's in-depth investigation of the insurance company Accordia (Global Atlantic).
Review of the insurance companies involved and historical events
Accordia, full English nameAccordia Life and Annuity Co. , Is Global Atlantic (tentatively translated in Chinese as:Global Atlantic Financial Group) Under the brand, actually carrying out insurance businessAmerican Insurance Company.Because the company is fully developing in 2019Foreigner insurance market, To become a US insurance company that can apply for individual insurance policies without any US association at all, so it has also received a certain degree of attention in the Chinese community.
Former California Insurance Commissioner Dave Jones held a press conference in 2018
The American Life Insurance Guide Network once published in September 2018According to the report, The California Insurance Bureau started an investigation of Accordia Insurance Company because it received a large number of complaints against the insurance company.
(Related reports:Two life insurance companies let the insurance policy break, and the California Insurance Bureau intends to sue and drive out of California）
In the American Life Insurance Guide website January 2019ReportAmong them, four Illinois policyholders initiated a class action lawsuit.A federal judge in Illinois preliminarily approved a settlement agreement allowing Global Atlantic The Accordia insurance company and the policyholder reached a settlement.
(Related reports:Global Atlantic's insurance company reached an out-of-court settlement agreement, and the final compensation clause was announced in December）
Lawyers make $220 million, but the indemnities of policyholders are vague
The California Insurance Bureau notified the Illinois Federal Court.The California Insurance Bureau believes that in the final settlement transaction, in addition to specifying the relevant attorney fees of approximately $220 million,不仅Failure to clearly explain the estimated amount of compensation to 53 policyholdersAnd alsoLet AccordiaEscape the ongoing investigation by the California Insurance Bureau for its "premature termination of insurance".
The California Insurance Bureau wrote in a briefing opposing the settlement agreement: "The Insurance Bureau will continue to pay attention to the potential impact of the California Insurance Bureau's ongoing investigation against Accordia Insurance Company, and its authority as a regulatory agency. We are also concerned about whether the terms of the proposed settlement agreement are reasonable and sufficient for California consumers.”
Doubts and doubts, California Insurance Bureau calls for professional evaluation
The California Insurance Bureau expressed doubts about the proposed settlement agreement, believing that the settlement transaction could not fully compensate the insured, and pointed out that the insurance company did not establish a fund to pay for this part of the claims, and the insurance company did not take part in the collective The economic compensation value of the litigation policyholder is estimated.
According to the California Insurance Agency,The policyholder will only get refunds for small fees, such as bank overdraft service fees.
The California Insurance Bureau also raised further questions about the proposed settlement agreement because the transactionObviously excludes policyholders who have no evidence to prove that they have called Accordia's customer service department in advance.If the policyholder does not call to file a specific complaint, it meansIn some cases, the policyholder will be excluded from the settlement agreement.
The California Insurance Bureau pointed out: "The imposing of such conditions is only to prevent claims." The Insurance Bureau pointed out that policyholders participating in class actions have to complete various red tapes and forms in exchange for such as bank overdraft fees and interest rate adjustment fees. Such small settlement payments.
The California Insurance Agency informed the Illinois Federal Court that the Insurance Agency is currently investigating more than 100 complaints from Accordia policyholders who have reported many issues related to the company.The Insurance Bureau is concerned that the language used in this settlement agreement may makeAccordiaEscape any responsibility.
"This (agreement) is intended to preclude California policyholders participating in a class action from filing a complaint with the Insurance Bureau, which unduly impedes the Bureau's ability to take enforcement action for violations of the California Insurance Act and related regulations," the Bureau of California said. "(End of full text)
(>>>Related reading:Knowledge Post | What does Lapse mean?averagePer yearHow many people are out of guarantee?）
(source: Law360 , a subsidiary of LexisNexis. Reported by the American Life Insurance Guide Network)appendix
01. "Calif. Opposes Accordia Botched Life Insurance Billing Deal", Jack Queen, 2019.11, https://bit.ly/37JyLkS
Contact and related information inquiries
The insured’s lawyer’s representative:
Vess A. Miller and Richard E. Shevitz of Cohen & Malad LLP
Stephen L. Williams of the Williams Law Firm
James M. Terrell and P. Michael Yancey of Methvin Terrell Yancey Stephens & Miller PC.
Representative of the insurance company:
Jason H. Gould and Roland C. Goss of Drinker Biddle & Reath LLP.
Representative of California Insurance Bureau:
Michelle Lily Nijm of the state attorney general's office.
Case information:
Clapp et al. v. Accordia Life and Annuity Co. et al.,
Case No. 2: 17-cv-02097, US District Court for the District of Central Illinois.
