4th Cir. Upholds Approval of Settlements in ‘Cost of Insurance’ Actions Against Life Insurer

BALTIMORE — A federal appeals court has upheld a Maryland federal judge’s class certification and approval of settlements in two class actions accusing Banner Life Insurance Co. of shifting its debt to offshore reinsurers to hide its “questionable” solvency.

In a March 15 opinion, a 4th Circuit U.S. Court of Appeals panel found the class met the Rule 23(a) requirements for class certification and that the settlements were fair, reasonable, and adequate under Rule 23(e)(2).

Plaintiffs purchased universal life insurance policies from Banner in 2002. The policies provided a $300,000 death benefit and no lapse guarantee in exchange for a …