This class action brings suit against State Farm Life Insurance Company for breach of contract and conversion, claiming the company has wrongfully deducted certain amounts from the Account Value of its Form 94030 universal life insurance policies. The complaint claims that, in an earlier case, the court made a judgment against State Farm for the same conduct, but that State Farm continues to make the same wrongful deductions.
The class for this action is all persons who own or owned, on or after June 7, 2018, a universal life insurance policy issued by State Farm Life Insurance Company on its policy Form 94030 in Missouri.
Form 94030 is a universal life insurance policy. Such policies have an Account Value that the complaint claims is money held in trust by State Farm for the policy owners. Each month, the policy owners pay in a premium, which adds to the account value. State Farm is permitted to deduct certain charges from the account value. But the complaint alleges that State Farm deducts more than it is entitled to.
The earlier case referred to in this complaint is Vogt v. State Farm Life Insurance Company, 2:16-CV-04170-NKL (W.D. Mo.). According to the complaint, the Vogt case was filed in the same district more than five years ago, alleging that State Farm made unauthorized deductions from Account Values, by including “certain undisclosed ‘loads’ in the ‘Monthly Cost of Insurance Rates’ it used to calculate the monthly ‘Cost of Insurance Charges’…”
The complaint claims that the charges authorized by the policies include (1) the cost of insurance (COI), (2) the monthly charges for any riders added to the policies, and (3) the monthly expense charge of $5.
The policies say that the COI rates “are based on the Insured’s age on the policy anniversary, sex, and applicable rate class. … Such rates can be adjusted for projected changes in mortality but cannot exceed the maximum monthly cost of insurance rates.”
The complaint alleges, “Thus, under the explicit terms of the Policies, [State Farm] is authorized to determine Monthly Cost of Insurance Rates for each policy year using only the Insured’s age, sex, applicable rate class, and projected changes in mortality.”
The Vogt court determined that, under Missouri law, State Farm had violated the terms of its Form 94030 polices and required that the company pay more than $34 million.
The complaint claims, “According to the Vogt court’s determination, [State Farm] is not authorized to load its Monthly Cost of Insurance Rates with non-mortality factors. Nonetheless, [State Farm] continues” to do so.
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
State Farm Life Insurance Determination of COI Missouri Complaint
March 25, 2022
This class action brings suit against State Farm Life Insurance Company for breach of contract and conversion, claiming the company has wrongfully deducted certain amounts from the Account Value of its Form 94030 universal life insurance policies. The complaint claims that, in an earlier case, the court made a judgment against State Farm for the same conduct, but that State Farm continues to make the same wrongful deductions.
State Farm Life Insurance Determination of COI Missouri ComplaintCase Event History
State Farm Life Insurance Determination of COI Missouri Complaint
March 25, 2022
This class action brings suit against State Farm Life Insurance Company for breach of contract and conversion, claiming the company has wrongfully deducted certain amounts from the Account Value of its Form 94030 universal life insurance policies. The complaint claims that, in an earlier case, the court made a judgment against State Farm for the same conduct, but that State Farm continues to make the same wrongful deductions.
State Farm Life Insurance Determination of COI Missouri Complaint