USAA Universal Life Insurance Settlement 2021 – Roy Spegele’s Class Action To End For $90 Million. Each Member To Get $50…
By Consider The Consumer on 07/09/2021
USAA $90 Million Universal Life Insurance Cost Settlement
Current and former USAA Life policyholders may qualify for a minimum $50 payment as part of a $90 million class action settlement addressing complaints regarding the company’s Universal Life plans.
Roy Spegele, et al. v. USAA Life Insurance Company
The United Services Automobile Association (USAA) provides banking, investing, and insurance services to people and families that are a part of the United States Armed Forces or the military. At the end of 2017, it had a membership of 12.4 million.
Lead Plaintiff Roy Spegele filed a class action lawsuit alleging that the charges associated with USAA Life’s insurance cost violated the company’s regulations in various ways.
Three charges were brought in the complaint:
- USAA calculated cost of insurance (COI) rates based on variables other than those specified in the policy
- When calculating rates, USAA takes into account its expenses
- USAA is required to consider predictions of future mortality experience in computing COI; however, even as these expectations have improved, USAA’s rates have not decreased
The Class consists of anyone who owns or previously owned Universal Life 1, 2, 3, and 4 policies issued or administered by USAA Life—or its predecessors in interest—that were in force on or after March 1, 1999, subject to certain important exclusions.
Roy Spegele Settlement
USAA denies the claims but agreed to the Roy Spegele Settlement to avoid the risks and expenses involved with continued litigation.
The Court has yet to rule in either party’s favor.
However, Class Members will receive a check with an amount decided by the settlement administrator if the Court approves the USAA Universal Life insurance cost settlement. After the attorneys’ fees and other costs are deducted, each Class Member will receive a proportionate share of the settlement amount.
Claimants will get a minimum payment of $50. Class Members are encouraged to consult their tax advisors regarding the proposed settlement’s tax implications
The deadline to opt-out of the settlement or to object to it is August 5, 2021. A final hearing on fairness is on August 26, 2021.
Class Members are not required to file a claim to receive the settlement benefits.
Editor’s Note on USAA Universal Life Insurance Settlement 2021:
This article is written to notify you that USAA Life policyholders—Universal Life 1, 2, 3, and 4 policies—current and former, will receive a minimum payment of $50 as settlement.
Case Name & No.: Roy Spegele, et al. v. USAA Life Insurance Co., Case No. 5:17-cv-967-OLG
Jurisdiction: U.S. District Court for the Western District of Texas
Products/Services: USAA’s Universal Life Insurance
Allegations: A class-action lawsuit allegedly states that USAA is using other factors to compute the COI
Status: To be settled
Do you know anyone enrolled in USAA Life policies? What are your thoughts about the association’s denial of the allegations? Share with us your thoughts by clicking the “Contact Us” button below!
You can also reach out to us on Twitter or Facebook or via email at Outreach@ConsiderTheConsumer.com. Also, directly on our website! We look forward to hearing from you.
Suggested Article: Logitech Alert System Settlement Details 2021.
Leave a Reply