Miller Schirger LLC and Stueve Siegel Hanson LLP announce that an Indiana court has granted final approval of a $2.25 billion settlement of a class action lawsuit against The Lincoln National Life Insurance Company over alleged life insurance policy overcharges. Lincoln National agreed to settle the case by, among other things, issuing term life insurance certificates to a settlement class consisting of approximately 77,000 policy owners across 30 states. The term life insurance certificates will have a total face amount of death benefits estimated at $2.25 billion, with a market value of approximately $171.8 million.
In June 2009, Miller Schirger and co-counsel filed the class action against Lincoln National. The firms brought the lawsuit on behalf of Peter S. Bezich and other individuals who owned variable universal life insurance policies administered by Lincoln National, and alleged “cost of insurance” overcharges and other policy overcharges. Lincoln National denied all liability or wrong doing with regard to the claims and allegations asserted in the case.
“After six and a half years of hard fought litigation, including appeals to the United States Court of Appeals for the Seventh Circuit and the Indiana state appellate courts, we are pleased that we secured substantial relief for our clients,” said John Schirger.
“We are continuing our efforts on behalf of life insurance policy holders who we believe are being overcharged for their life insurance by several other life insurance companies and hope to secure similar relief for these clients,” said Patrick Stueve.