Stern. When a policy is surrendered, the policyholder will lose the premiums they paid. According to Pacific Lifes IUL marketing materials, a surrender charge will apply to all policies surrendered within their first 10 years. DocketProof of Personal Service; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. The first policy was issued to the founder. ), In approximately March 2016, Silverman became acquainted with Wayne L. Weaver (Weaver), who said he had a program that they could market to Silvermans client on which they could split the commissions paid by the insurers. The plaintiffs allege that PacLife designed and marketed this product specifically to skirt the spirit of Actuarial Guideline 49 (AG49). We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Neither Silverman nor United Omaha disclosed that the premiums and financial projections depended on Gary Marenzi and Rebecca Prange having a particular insurance rating or classification. On 07/12/2022 STEVEN MUNZER filed an Other lawsuit against PACIFIC LIFE INSURANCE COMPANY. Other than the initial investment, which would be returned, Weaver said that Gary Marenzi and Rebecca Prange would have $40 million of free life insurance. In addition, Silverman sold Gary Marenzi and Rebecca Prange an annuity with Nationwide Life Insurance Company of $213,467. Pacific Life is a product provider. Therefore, the Court orders Plaintiffs and their counsel, jointly and severally, to pay sanctions in the amount of $2,935 within thirty (30) days. On 06/29/2021 ABIGAIL MAMBOLEO filed a Contract - Business lawsuit against PACIFIC LIFE INSURANCE COMPANY. Now, PacLife moves to compel further responses to form interrogatories, special interrogatories, and requests for production of documents that were served in December 2021. A class action lawsuit filed in California against Pacific Life Insurance Company (PacLife) challenges its sales and marketing representations. Indeed, it has been almost one year since these discovery requests were served, and this motion should not have been necessary. I bought it because I was told the policy premium would NEVER INCREASE and would never be cancelled unless I didnt make my premium payments. The dramatic change in policy values was the motivation for filing the lawsuit. Proof of Personal Service; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. We and our partners use cookies to Store and/or access information on a device. hXmo6+D?9RJ^c; bg]-6QY$*79/;XH,M""6sa!0w=F@02E? BM86"387ot/gCN"-3Yl`z5=iA,~FK? The trustee is Gregory E. Prange. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); @2023 Top Class Actions. Agent Xu recommended Li buy a PacLife PDX policy designed to accept five $500,000 annual payments. Privacy Policy | Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Absent that rating, United Omaha would charge a greater premium. (Id., 24.) The moving party shall provide notice and file proof of such with the Court. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Top Class Actions is a Proud Member of the American Bar Association, Various Trademarks held by their respective owners. (Ibid.) (Id., 103.) The contact form sends information by non-encrypted email, which is not secure. Every subsequent interaction I had with any of you - in person, via email, or by phone - only corroborated that feeling. Plaintiffs assert a First Cause of Action with five separate counts (for intentional misrepresentation, fraudulent concealment, professional negligence, unfair competition, and intentional infliction of emotional distress) against all defendants except United Omaha. Pacific Life is a Fortune 500 company and the 10th largest seller of variable annuities. Click Accept if you consent. Plaintiffs counsel constitutes an abuse of the discovery process, warranting sanctions. The list is updated frequently, so check . 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. ), 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. The insurer was also accused of targeting rollover IRAs even when annuities were not suitable for them. An IUL class action lawsuit investigation is underway to probe into allegations that people who purchased Indexed Universal Life (IUL) insurance policies were misled into expecting unrealistic rates of return that comes after insurance companies presented used fabricated and false illustrations in marketing literature and sales material. (Id., 25.) You will have to make your claim through FINRA arbitration. Again, Plaintiffs ignore their own allegations: The contract with United Omaha was only 20 years, so their claims against United Omaha do not stretch beyond the 20-year period of the contract. ? The policy claimed to use a 6% which in reality was 24% by dint of a 4x multiplier. Counsel is licensed to practice and in good standing in Maryland, where he resides. According to this suit, the insurance company routinely used false marketing when advertising their IUL PDX policies to prospective customers. v. Pacific Life Insurance Company, et al. (Code Civ. Then, Wintrust required additional collateral, so Marenzi assigned a $130,000 annuity to Wintrust as collateral, which had tax consequences. Then, Plaintiffs discovered that, in fact, the United Omaha policy was not paid-up for 20 years, requiring them to pay $596,960 to maintain this policy for the full 20 years, per their original plan. (Cal. Notice of Case Management Conference; Filed by Clerk. Weaver obtained financing from Wintrust Life Financial (Wintrust). SSEK Law Firm believes that filing your own individual FINRA arbitration claim, rather than joining a class action, increases your chances for maximum recovery. (Ibid.) %%EOF For information on deleting the cookies, please consult your browsers help function. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. The Judge overseeing this case is STEPHEN I. GOORVITCH. Pacific Life also holds the mortgage on the hotel, which totaled $122.5 million when that company substantially increased its ownership stake through a refinancing in 2018, according to the suit. 959 0 obj <>stream NFU?[(c=h?qoCAI=tNsx0@0w/n[x'uhY55mPk/4IoKzWq}S0p?M/dPlZ:.y`W;V2(h'4| S While many of us might look at market conditions and quickly draw such a conclusion, that case may be much more difficult to argue in a court of law. In 2008, SWS Group agreed to buy M.L. settlement administrator or your attorney for any updates regarding (c), (e).). The plaintiffs are alleging misleading marketing materials and excessive policy charges. endstream endobj startxref o PLASI would then utilize the funding to purchase an annuity contract from Pacific Life to fund its obligations under the structured attorney fee payout. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represents investors of Pacific Life products that have suffered investment losses. This field is for validation purposes and should be left unchanged. 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. Acting on a tip she received from a family member, who holds an insurance license, Li requested several in force illustrations from PacLife depicting varying scenarios premium payment scenarios to the policy moving forward; one of those scenarios included staying the course.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'theinsuranceproblog_com-leader-1','ezslot_9',162,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-leader-1-0'); The in-force illustrations provided by PacLife depicted much lower values than the ones Li saw in the original illustration used by agent Xu to sell her the PacLife PDX policy. 937 0 obj <>/Filter/FlateDecode/ID[<58768771925F2449B604DCE4A3FB14BB>]/Index[908 52]/Info 907 0 R/Length 124/Prev 840995/Root 909 0 R/Size 960/Type/XRef/W[1 3 1]>>stream The lawsuit was filed by Bonnet, Fairbourn, Friedman and Balint, a law firm in Phoenix with a long track-record of class action suits in life insurance, including huge settlements in vanishing premium and COI increases. Duh! Weaver also misrepresented that the preexisting policies owned by the trusts were no longer necessary because the replacement policies from Lincoln and PacLife were more favorable. 4. The exact amount that a policyholder can walk away with will vary depending on the surrender fees charged by their insurance provider. (Ibid.) This varies from other life insurance policies with either fixed or variable interest rates. When I spoke with him later he reviewed the process. I loved learning legal jargon from you. It was filed by a law firm out of Phoenix with a long track record of class action suits in life insurance. %%Invocation: gs -sDEVICE=pdfwrite -dCompatibilityLevel=1.4 -dPDFSETTINGS=/default -dNOPAUSE -dQUIET -dBATCH -sOutputFile=? I set my expectations high, and they delivered above and beyond. (Id., 83.) 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. (Ibid.) The application is unopposed. The firm offers these investment products to persons, pension funds, and businesses. Having your own skilled securities lawyers fighting for your recovery and protecting your legal rights is integral. What you describe in this article PacLife did to these buyers is exactly what they are doing to me. An additional $35 million is set aside for policy-holders with special circumstances, Parry said. The lawsuit addressed their IUL product - PDX. Code of Civil Procedure section 379 permits joinder of defendants if there is: (1) Any right to relief jointly, severally, or in the alternative, in respect of or arising out of the same transaction, occurrence, or series of transactions, and (2) [I]f any question of law or fact common to all of these persons will arise in the action. (Code Civ. Blending for indexed universal life insurance policies normally has little long term effect on cash value accumulation and most typically results in a reduced surrender charge. We use cookies to improve functionality and performance, enhance user experience, and provide tailored content. PacLife has always taken a different approach to blending and certainly manufactured products where blending term insurance did enhance policy cash value performance. We've had our skepticism about the products for a long time. Terms and Conditions. (Ibid.) The Court sustains the demurrer without leave to amend. (Ibid. If you make a purchase using He was very patient, and I never felt rushed. Required fields are marked *. DocketNotice of Posting of Jury Fees; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. On or about November 11, 1997, Gary Marenzi established the Marenzi Insurance Trust Number One for the purposes of holding title to one or more life insurance policies on his life. Weaver represented that the cash value of their then-existing policies with MassMutual would be applied to the new policies to minimize the interest and collateral requirements. Weaver did not disclose the terms of the loan or life insurance policy, but stated that the only circumstances under which they would have to make payments would be in the event of a multi-year stock market decline. The plaintiffs are alleging misleading marketing materials and excessive policy charges. But unscrupulous agents are writing all 1 million in IUL. Public Records Policy. Additionally, Silverman sold Rebecca Prange a $500,000 life insurance policy with Continental Western Insurance Company. . 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. By now you may have heard about a class action lawsuit filed in Orange County last week against Pacific Life. ), In 2011, Silverman represented to Gary Marenzi and Rebecca Prange that United Omaha would issue a joint and last survivor flexible premium life insurance policy with a death benefit of $3 million that would be fully funded at the guaranteed values for 20 years with a payment of $104,000 at the outset, which could be paid over two years with each payment being $52,000. With respect to Gary Marenzi and Rebecca Prange, Weaver told Silverman that his program would enable these clients to obtain more life insurance with little or no out-of-pocket expenses because the cause value of their existing policies would be used for initial funding. The issues in the suit go to the core of. 3:23-CV-00124 | 2023-02-02, U.S. District Courts | Labor | "l3241V G- z{3`}9/ $ HA Cancellation and Refund Policy, Privacy Policy, and Union Pacific faces wave of lawsuits. However, legal allegations against the company indicate that these promises may be false. (Ibid.) (Id., 81.) How, you ask? Notice and Acknowledgment of Receipt; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. Plaintiffs assert a First Cause of Action with five separate counts (for intentional misrepresentation, fraudulent concealment, professional negligence, unfair competition, and intentional infliction of emotional distress) against all defendants except United Omaha. The Judge overseeing this case is CARROLL, HUNTER W. The case status is Pending - Other Pending. hhR#*ehtL&%v B:eE\NG j0:/%D'Zldh+)a,O/vJtDAMcY)tw~Y cOY 1avP Qb{!j$L8l=MPa"& cN0. 3:5-7.) Pac Life Sued for Fraud in Class Action Over Deceptive IUL Sales To read the class action complaint (a MUST read), click on the following link: http://advisorshare.com/pac-life-class-action-pdx-iul I've been warning about Pac Life's PDX IUL policy for years. Therefore, the Court grants the ex parte application and advances the hearing on the motion to the same date/time as the case management conference: December 8, 2021, at 8:30 a.m. For example, Plaintiffs allege that the damages from the United Omaha claims is $596,950, which is the cost of maintaining the $3,000,000 to Year 20 of the Policy according to United of Omahas March 17, 2021 illustration. (Id., 104.) (Ibid.) But outside of a very complex legal/ethical issue for selling life insurance, it's amusing to me that indexed universal life insurance is the focal point for a blending conversation and its necessity when marketing and selling life insurance. Plaintiffs allege that Silverman and United Omahas misrepresentations and/or omissions occurred on or about March 30, 2011. Parry has been involved in similar suits against other insurers, including Prudential, New York Life, TransAmerica and Sun Life. Pacific Life Insurance Company may have sold their indexed universal life (IUL) policies under misleading sales representations, which resulted in some consumers surrendering their policies due to unexpected fees. In 1972, the investment management subsidiary, Pacific Investment Management Company (PIMCO), was launched. ), 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. Reviewed the process - in person, via email, or by phone - corroborated... Omahas misrepresentations and/or omissions occurred on or about March 30, 2011 and United Omahas misrepresentations omissions... Purposes and should be left unchanged bm86 '' 387ot/gCN '' -3Yl ` z5=iA, ~FK sends information by non-encrypted,... Investors of Pacific Life insurance policies with either fixed or variable interest rates of case Conference... 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