Lincoln National $147.5M Insurance Deductions Settlement

If you own or owned a flexible premium adjustable life insurance policy issued or administered by Connecticut General Life Insurance Company or The Lincoln National Life Insurance Company, you might be eligible to claim a portion of a $147.5 million class action settlement.

The Lincoln National Life Insurance Company has agreed to pay $147.5 million to settle a class action lawsuit regarding these alleged improper deductions.

Who Are the Class Members?

The class members include individuals or entities who own or owned one of the approximately 191,000 flexible premium adjustable life insurance policies.

These policies were issued or administered by Connecticut General or Lincoln National, or their respective predecessors, and were active on or after May 27, 2010.

The policies must have included:

• A cost of insurance charge calculated based on expectations of future mortality experience.
• Additional but separate policy charges, deductions, or expenses.
• An investment, interest-bearing, or savings component.
• A death benefit.

If a policyholder is deceased, their estate is considered a class member.

How Much Can Class Members Get?

Class members are eligible to receive a portion of the settlement fund, which amounts to $147.5 million. The distribution plan is designed to provide each member with an approximate pro rata share of the net settlement fund, based on the cost of insurance charges they paid.

The calculation involves:

• A minimum settlement relief payment of $10
• A proportionate share of the remaining net settlement fund, calculated based on the total cost of insurance charges paid over the life of each policy

For example, if a policyholder paid $1,000 in cost of insurance charges and the total charges for all policies amount to $1,000,000, their share would be calculated as follows:

• Proportionate share = (1,000 / 1,000,000) \* Remaining Net Settlement Fund

Class members do not need to take any action to receive their compensation. Settlement checks will be automatically mailed to each member once the settlement is approved and all appeals are resolved.

$147.5 Million Settlement Fund

The settlement fund of $147,500,000 will cover:

• Payments to settlement class members.
• Class counsel's attorneys' fees, costs, and expenses, subject to court approval.
• Service awards to plaintiffs, also subject to court approval.
• Expenses incurred in administering the settlement.

When is the Lincoln Settlement Payout Date?

The court will hold a fairness hearing on December 16, 2024, to decide whether to approve the settlement. If approved, settlement checks will be mailed to class members within 45 days if any/all appeals are resolved.

Why Was There a Class Action Settlement?

The lawsuit alleged that the defendants took improper deductions from the cash values of the policies, breaching the policy terms. The settlement avoids the costs and risks of further litigation and provides immediate relief to the class members.