Migliaccio & Rathod LLP is investigating whether universal life insurance companies have credited policyholders less interest than the guaranteed minimum rates promised under their insurance contracts, including policies issued in Iowa, Nebraska, and Missouri.
Certain universal life insurance policies guarantee a minimum interest-crediting rate on qualifying account values. Unlike projected investment returns, these minimum rates are contractual provisions that may establish a floor for how interest is calculated. However, premium payments, monthly insurance charges, and other deductions can make it difficult for policyholders to determine whether the correct interest was credited.
Migliaccio & Rathod is investigating whether insurers incorrectly calculated or applied guaranteed minimum interest credits, potentially reducing policyholders’ accumulated cash values, surrender proceeds, or the duration of their life insurance coverage.
Policyholders May Have Experienced:
- Receiving interest credits below the minimum rate specified in their policy;
- Having account values grow less than required under the contractual formula;
- Receiving annual statements with unclear interest calculations;
- Experiencing lower surrender values because of potentially missing interest credits;
- Having policy values decline despite a guaranteed minimum crediting provision; or
- Difficulty obtaining detailed account histories from their insurer.
Potential Claims May Include:
- Failure to apply guaranteed minimum interest-crediting provisions;
- Incorrect calculation of universal life insurance account values;
- Breach of insurance contract;
- Improper reduction of policy cash values or surrender benefits; or
- Violations of applicable insurance laws.
Signs You May Be Affected:
- You own or previously owned a universal life insurance policy;
- Your policy includes a guaranteed minimum interest-crediting rate;
- Your policy was issued or maintained in Iowa, Nebraska, or Missouri;
- Your account statements suggest the required interest may not have been credited;
- You experienced an unexpectedly low surrender value or policy lapse; or
- You have the policy contract, annual statements, and account-value history.
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.