Action Accusing Life Insurer of Engaging in Phony Reinsurance Transactions Heads to Mediation

BALTIMORE — A Maryland federal judge has sent to mediation a putative class action accusing a life insurer of engaging in phony captive reinsurance transactions in order to hide its questionable solvency from policyholders while charging them ever-increasing fees.

In a Nov. 6 order, Judge George L. Russell III of the U.S. District Court for the District of Maryland stayed the action and ordered the parties to advise him of its status following the mediation scheduled for January 9 and 10.

William Penn issues universal class policies, which differ from regular life insurance policies in that they do not expire …