Migliaccio & Rathod LLP is investigating whether indexed universal life insurance companies have failed to apply guaranteed minimum interest credits or other contractual crediting provisions, including policies issued in Iowa, Nebraska, and Kansas.
Indexed universal life insurance policies often calculate certain interest credits using the performance of a market index. However, these policies may also contain guaranteed minimum crediting rates, participation rules, and specific dates for applying interest. These contractual protections can affect the value of a policy even when the underlying market index performs poorly.
Migliaccio & Rathod is investigating whether insurers incorrectly applied contractual floors or interest-crediting formulas, potentially reducing the amounts credited to policyholders’ accounts and affecting their cash values or available benefits.
Policyholders May Have Experienced:
- Receiving interest credits below a guaranteed minimum applicable to their index account;
- Having interest calculated using an incorrect participation rate or contractual formula;
- Receiving credits on dates different from those required by the policy;
- Experiencing unexplained discrepancies in indexed interest calculations;
- Receiving lower account values because of potentially incorrect interest credits; or
- Difficulty obtaining an explanation of how the insurer calculated indexed returns.
Potential Claims May Include:
- Failure to apply guaranteed minimum crediting provisions;
- Incorrect calculation of indexed interest credits;
- Breach of insurance contract;
- Improper administration of contractual participation or crediting rules; or
- Violations of applicable insurance laws.
Signs You May Be Affected:
- You own or previously owned an indexed universal life insurance policy;
- Your policy includes a guaranteed minimum crediting rate or contractual interest formula;
- Your policy was issued or maintained in Iowa, Nebraska, or Kansas;
- Your account statements appear inconsistent with the applicable crediting provisions;
- You believe incorrect interest credits reduced your policy’s value; or
- You have the policy contract, benefit illustrations, and annual account statements.
If you believe you experienced this issue, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.