The old justification for the delusion (some would say fraud) of necessary capital accumulation from the public wore thin decades ago. It was filed by a law firm out of Phoenix with a long track record of class action suits in life insurance. 3) (collectively, Plaintiffs) filed this action against Pacific Life Insurance Company (PacLife), Lincoln National Life Insurance Company (Lincoln), Wayne L. Weaver, TFP Funding Partners, LLC, Daniel M. Silverman, and United of Omaha Life Insurance Company (United Omaha) (collectively, Defendants). "l3241V G- z{3`}9/ $ HA Harris County District Courts | Other | You can design it as 100k base policy and 900k as term in a whole life. The company is based in Newport Beach, California, and offers consumers a wide variety of life insurance products, investment products, retirement planning services, and annuities, among others. The contact form sends information by non-encrypted email, which is not secure. 1), and Wesley Prange (as trustee of the Marenzi Insurance Trust No. Then, Wintrust required additional collateral, so Marenzi assigned a $130,000 annuity to Wintrust as collateral, which had tax consequences. The plaintiffs are alleging misleading marketing materials and excessive policy charges. Further, Counsel has demonstrated that he served this application on the State Bar of California at its San Francisco office, and paid the $50 fee as required. Too bad you still have to pay for it, Stock market today: Most stocks on Wall Street tick higher, Scooter operators say strict rules, rampant theft threaten business in San Diego, Striking Medieval Times workers struck by car on picket line, These are the EV models that will get you the full $7,500 tax credit, The actor, the hairstylist and the eye surgeon: Drugs and death in a Malibu beach house, Have guests in town? (Id., 84.) In 1994 it became a publicly-traded company that managed fixed-income securities. The trustee for these trusts is Wesley A. Prange. Plaintiffs Gary Marenzi, Rebecca Prange, Gregory Prange (as trustee of the Marenzi Insurance Trust No. Attorney Geoffrey Maurice Gamble (Counsel) moves to be admitted pro hac vice as counsel for Defendant Lincoln National Life Insurance Company (Defendant). Its getting awkward. This policy was a loser regardless if it was a level or increasing death benefit. Other than the initial investment, which would be returned, Weaver said that Gary Marenzi and Rebecca Prange would have $40 million of free life insurance. hhR#*ehtL&%v B:eE\NG j0:/%D'Zldh+)a,O/vJtDAMcY)tw~Y cOY 1avP Qb{!j$L8l=MPa"& cN0. Originally called Pacific Mutual Life, in 1997, the company changed its name to Pacific Life Insurance Company (PLIC) and adopted the humpback whale as its logo. (Complaint, 104.). We and our partners use cookies to Store and/or access information on a device. On June 28, 2001, Rebecca Prange established the Marenzi Insurance Trust Number Two for the purpose of holding title to one or more life insurance policies on her life. Defendants Counsel shall provide notice and file proof of such with the Court. 2:23-CV-00460 | 2023-01-20, U.S. District Courts | Finance | What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. An indexed life insurance policy is a special type of insurance with an interest rate directly linked to a market index, such as the S&P 500. The firm became a mutual life company owned by its shareholders. Plaintiffs attorney Ronald Parry said a number of life insurance companies sold these vanishing premium policies in the early 1980s, according to the Post. Based upon the foregoing, Counsels motion for admission pro hac vice is granted. Why is this public record being published online? They lent their friend a van. Silverman also sold Rebecca Prange a $500,000 term life insurance policy with First Colony Life Insurance Company (First Colony), which she owned individually. After the fifth annual payment, Xu claimed Li would owe no future premiums and even be able to take income from the indexed universal life insurance policy in the amount of $175,000 per year. (Ibid.) On May 9, 2005, the Court granted Plaintiffs' motion for class certification (the "Certification Order"), on behalf of all persons or entities who purchased an individual deferred variable annuity contract, or who received a certificate to a group variable deferred annuity contract, issued by Pacific Life Insurance Company, or who made an additional . They are both named as defendants in the complaint. Top Class Actions is a legal news source Youve been a wonderful lawyer and a friend. Indeed, it has been almost one year since these discovery requests were served, and this motion should not have been necessary. (Ibid. 22.) Circuit Judge Douglas Stephens in Covington approved the settlement--estimated to have a total value of close to $140 million when administrative fees and other costs are included--in a written order Thursday. That said, I do have some additional thoughts on what the plaintiffs' legal team might have in their possession that could be bad news for PacLife, and potentially bad news for the insurance industry as a whole.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[300,250],'theinsuranceproblog_com-medrectangle-4','ezslot_2',158,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-medrectangle-4-0'); At the core of this lawsuit are PacLife's PDX Indexed Universal Life Insurance policy and its extremely obtuse multiplier bonus. 908 0 obj <> endobj DocketProof of Personal Service; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. 3:21-cv-01444-BHH Opinion and Order This matter is before the Court on Defendant Pacific Life Insurance Company's ("Pacific Life") motion to dismiss the second amended complaint pursuant to Federal Rule of Civil Procedure 12(b)(6).1 (ECF No. 3:5-7.) DocketNotice of Case Assignment - Unlimited Civil Case; Filed by Clerk, Case Number: *******7878 Hearing Date: November 17, 2022 Dept: 39, Gary Marenzi, et al. Founded in 1868, Pacific Life is an American insurance company with $191B in assets. U.S. District Courts . to Revenue Procedure 93-34, 1993-2 C.B. The application is unopposed. With unexpectedly high premiums and subpar returns, consumers may be forced to surrender their policy due to the negative impact of the insurance, according to Investopedia. al. He was very patient, and I never felt rushed. Plaintiffs argue that there is some potential overlap in damages. 2021-04-28, Harris County District Courts | Contract | NFU?[(c=h?qoCAI=tNsx0@0w/n[x'uhY55mPk/4IoKzWq}S0p?M/dPlZ:.y`W;V2(h'4| S (Id., 26.) Certain plaintiffs (Marenzi, Rebecca Prange, and Wesley Prange) assert a Second Cause of Action with four separate counts (for negligence misrepresentation, breach of contract, professional negligence, and declaratory relief) against United Omaha and Daniel Silverman. Proc., ; 379.) Its annuities and other products are sold by independent financial professionals who associate with brokerage firms, banks, financial planning firms, and other financial institutions. We serve the following localities: Atlanta, Baltimore, Boston, "I am going to miss conversations with you, Sam Edwards. Now, United Omaha demurs to the complaint, which Plaintiffs oppose. View Top 10 List DocketSummons (on Complaint); Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. The complaint does allege specific wrong-doing on the behalf of agent Xu. The exact amount that a policyholder can walk away with will vary depending on the surrender fees charged by their insurance provider. When I spoke with him later he reviewed the process. But, even more, it is your self-respect and commitment to your position that I admire and your persistent patience-your equanimity. This blog has done nothing to educate anybody. Rules of Court, rule 9.40, subd. Plaintiffs speculate that the insurance companies will argue that because the PacLife and Lincoln policies were replacing the United policy (and others), United should not have to pay damages because they are subsumed in the claim against PacLife and Lincoln, or conversely, PacLife and Lincoln should get a credit for the damages United pays. (Plaintiffs Memorandum of Points & Authorities, p. Pacific Life Insurance Company, Case 0:10-cv-60754-JIC) alleging that Pacific Life Insurance marketed and sold high premium payment Flex XII life insurance policies that Pacific Life represented were appropriate for use in funding Internal Revenue Code IRC 412 (i) pension plans, that premiums paid on the policies were fully tax deductible and The Court has considered Plaintiffs remaining arguments and finds them to be without merit. We use cookies to improve functionality and performance, enhance user experience, and provide tailored content. With the mention that companies can often cause problems for a product category as a whole when they issue products like this. Decide which cookies you want to allow. 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. (Ibid. (a).) I'm not necessarily saying that was the circumstance in this specific case, but the complaint brought it up and itcould become a subject for further exploration among insurance regulators. According to the firms CRD records, Pacific Life has been the subject of regulatory claims and litigation, such as: 2022: The New York State Department of Financial Services (DFS) imposed a $3M penalty on Pacific Life for conducting insurance business related to its pension risk transfer (PRT) business in the state without a license. Pacific Life is a Fortune 500 company and the 10th largest seller of variable annuities. It will also be interesting to see what happens with the agent Tiffant Xu and her insurance agency. If you make a purchase using . (Id., 11.) 6?7$c+i)J"@hXR\1. (Ibid.) From our first meeting, I felt "heard" and that my situation and story were respected. Weaver therefore obtained a $20 million on Rebecca Prange from Lincoln without disclosing that PacLife had declined the policy. 2:23-CV-00474 | 2023-01-20, U.S. District Courts | Labor | (Ibid.) The judge's order required the Pacific Life affiliate to pay at least $2 million to help support the then-temporarily shuttered hotel's operations. The lawsuit, filed in 1997, charged that Pacific Life, the largest life insurer based in California, cheated its customers in policies it had written from 1982 to 1997. An example of data being processed may be a unique identifier stored in a cookie. Plaintiffs cannot satisfy the first element because the two sets of claims arise from different transactions. It became only worth $248,000 upon death. (Id., 13.) 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. Case Details Parties Documents Dockets. I can only speculate, but I'm guessing that the plaintiffs' legal team's case will hinge heavily on its ability to prove that PacLife cannot return to the capability it assumed at policy issue and that those assumptions were never going to materialize. ANTHONY ALAIMO, Senior District Judge . In 2009, Silverman sold Gary Marenzi and Rebecca Prange a $2 million second-to-die or survivorship policy with MassMutual, which Wesley Prange as the trustee of the Marenzi Insurance Trust Number Three owned. Our law firm represents institutional and individual investors nationwide with significant losses in their portfolios, retirement plans and investment accounts. Gwendalyn Douglass v. Reliant Life Shares LLC et al. Li agreed to buy the policy and PacLife officially issued the policy effective mid-2018. In 2020, a California woman took legal action by filing a class action lawsuit against Pacific Life Insurance Company. In addition, Silverman sold Gary Marenzi and Rebecca Prange an annuity with Nationwide Life Insurance Company of $213,467. This is ClassAction.org's current list of open lawsuits and investigations. . Actions does not process claims and we cannot advise you on the 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. What will be most interesting here is if the plaintiffs' attorneys can prove their allegations based on little historical evidence and a majority of hypothetical future performance. (2012) 209 Cal.App.4th 1228, 1238.). Please review our Affiliate Link Disclosure for more information. 4. Chicago, DallasFort Worth, Denver, Detroit, Houston, Los Angeles, Miami, New York City, Philadelphia, Phoenix, San Bernardino-Riverside, San Diego, San Francisco, Seattle, St. Louis, TampaSt. 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. (Id., 31.) Thats criminal! Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. Each lawyer and staff member of our firm is devoted to assisting investors to recover losses caused by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. . The policy claimed to use a 6% which in reality was 24% by dint of a 4x multiplier. PacLife misleadingly marketed their PDX life insurance policies in a way that concealed the policies' risks while overstating their benefits, according to the plaintiff. The issues in the suit go to the core of abusive IUL . The lawsuit alleged, among other things, that Pacific representatives told potential customers that a single payment would cover all premiums, that it sold life-insurance policies as investments, and that it replaced or rolled over certain policies without policy-holders knowledge. A friend $ 130,000 annuity to Wintrust as collateral, which is secure! Founded in 1868, Pacific Life is a legal news source Youve been a lawyer... Information by non-encrypted email, which plaintiffs oppose list of open lawsuits investigations. To Wintrust as collateral, so Marenzi assigned a $ 20 million on Rebecca Prange an annuity nationwide! 6 % which in reality was 24 % by dint of a 4x multiplier Tiffant Xu and her agency! 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