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 name in EnglishAccordia 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, 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 reportSince the California Insurance Bureau received a large number of complaints against the insurance company, it began an investigation of Accordia Insurance Company.
(Related reports:Two life insurance companies let their insurance policies be terminated, and the California Insurance Bureau intends to sue and drive out of California）
In the American Life Insurance Guide website January 2019News reportAmong them, four Illinois policyholders initiated a class action lawsuit.A federal judge in Illinois preliminarily approved a settlement agreement allowing Global Atlantic Accordia, its insurance company, reached a settlement with the policyholder.
(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 policyholders’ compensation is 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,not onlyFailure to clearly explain the estimated amount of compensation to 53 policyholders, WillLet AccordiaEscape the ongoing investigation by the California Insurance Bureau for "premature termination of insurance."
In a briefing opposing the settlement agreement, the California Insurance Bureau wrote: "The Insurance Bureau will continue to pay attention to the potential impact of the investigation into the Accordia Insurance Company that is being conducted by the California Insurance Bureau, 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 did 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 respond to the collective participation. 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 action lawsuits have to complete various red tapes and forms in exchange for only fees such as bank overdraft fees and interest rate adjustment fees. Class of 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 causeAccordiaEscape 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 California Department of Insurance argued. ” (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.
