N.Y. Federal Lawsuit Over ‘Cost of Insurance’ Rate Increase Settled
October 28, 2021
NEW YORK — A lawsuit involving a “cost of insurance” rate increase imposed on universal life insurance policyholders nearly 20 years after the policies were sold to a different company via a reinsurance indemnity transaction has settled, according to a recent filing in New York federal court.
In an Oct. 25 order, Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York granted the parties’ request for 45 days to prepare a final settlement agreement and motion for preliminary approval.
The policies at issue are universal life or variable universal life insurance policies, comprising …