Magazine article Risk Management

Class Action Denied

Magazine article Risk Management

Class Action Denied

Article excerpt

Seventy percent of the U.S. households surveyed by the Insurance Research Council say that the class action lawsuit system needs to be reformed. Forty percent say the number of class action lawsuits today is too high. One judge in Michigan seems to agree.

Presiding Judge David McKeague of the Western District Court of Michigan denied class action status in a lawsuit filed against Jackson National Life Insurance Company this past spring. According to lead counsel Joel Feldman, of Sachnoff & Weaver, Ltd., Jackson National is "the only insurance company in America that has achieved three separate class certification denials for the same proposed class members."

This is significant for life insurers, a group that has been served with a spate of "vanishing premium" class action suits. Most of these involve sales practices during the late '70s and throughout the '80s, when interest rates were high. Consumers claim they were not made aware that if interest rates fell, they would have to pay more for their whole-life insurance policies. …

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