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Case ID: 3571 | Insurance | 07/26/2004
A class action has been filed against American Investors Life Insurance Company on behalf of senior citizens in California who were sold expensive annuity policies that allegedly offer no benefit payouts for at least ten years. The suit alleges that the company has engaged in unfair business practices by improperly targeting the marketing and sale of these annuities to senior citizens, and seeks unspecified compensatory damages.
The suit also alleges elder abuse and seeks to prevent the company from issuing age exceptions which enable them to sell annuity policies that are inappropriate for seniors. The action alleges that American Investors may have sold in excess of 150,000 policies, 90% of which may have been inappropriate policies to seniors. The policies may also include early withdrawal penalties. Patricia M. Westcott and her 83-year-old husband, Allin R. Westcott, were allegedly sold an annuity which had an age limit of 75 and does not mature until the year 2015 -- at which time Mr. Westcott would be 95 years old. American Investors allegedly made no effort to verify the suitability of its product and did nothing to protect the interests of the insured over its own financial gain. According to a 2002 California Department of Health and Human Service's report, at 65 years of age, the average life expectancy of a male living in California is 81 years. An annuity is a contract between a policyholder and an insurance company, under which the policyholder makes a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments back to the policyholder (annuitant) beginning immediately or at some future date. There are two types of annuities -- fixed and variable. In a fixed annuity, the insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing. The insurance company also guarantees that the periodic payments will be a guaranteed amount per dollar in your account. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Insurance Cases of Interest A class action has been filed against seven insurance companies on behalf of residents of Maryland, North Carolina, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia, who held flood insurance policies and suffered damage to their houses in September 2003 from Hurricane Isabel. The action alleges that the companies violated their contracts by failing to deliver benefits promised to policyholders. A class action has been filed on behalf of retirees who retired from the Case Corporation (now known as CNH Global NV) on or after July 1, 1983 and were under 62 years of age at the time of retirement. The suite alleges that Case denied such retirees supplemental benefits due to them under negotiated collective bargaining agreements and in violation of federal law. A class-action lawsuit involving more than 2,200 physicians will be allowed to proceed after a Jackson County judge denied three insurance companies' request for arbitration. A class action has been filed against the Hartford Financial Services Group (NYSE: HIG) and certain of its officers and directors by stockholders who purchased the company’s common stock between November 5, 2003 and October 13, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The first class action against AmerUs Group Co., AmerUs Life Insurance Company, American Investor Life Insurance Company Inc., and their affiliates AmerUs Annuity Group and Family First Insurance Services was filed April 11, 2005.
The class action complaint alleges that AmerUs Group Co., a publicly traded company on the New York Stock exchange (AMH), AmerUs Life and its affiliates’ sales practices are in violation of the federal Racketeering Influence Corrupt Organizations Act or RICO; and California’s elder abuse laws. Numerous class actions have been filed against nonprofit hospitals in Illinois, Minnesota, Ohio, Texas, Georgia, Alabama, Florida and Tennessee, on behalf of uninsured patients who allege that the hospitals do not honor their promise of charity care as defined in their tax-exempt status. The suits claim that the hospitals are charging uninsured patients "sticker" price while insurance companies negotiate large discounts for the same services provided to those with medical coverage, violating the hospitals’ tax-exempt status. |
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