Jackson National Life Insurance Agrees $24M Settlement In Elder Financial Fraud Class Action

This is a settlement for the lawsuit.

San Francisco, CA: A $25 million settlement has been proposed, which, if approved, would settle the proposed consumer fraud and elder financial abuse class action pending against Jackson National Life Insurance Co. The insurer has agreed to pay the settlement which would end the litigation and bring economic relief to over 44,000 elderly customers in California who bought their fixed deferred annuity products.

The lawsuit alleges that Jackson National targeted its senior citizen customers in the selling of its deferred annuities that had hidden fees, commissions and surrender penalties, essentially defrauding these clients.

According to court documents, the terms of the proposed class action stipulate that Jackson National make cash payments or account credits equal to 22 percent of any past surrender charges the affected policyholders incurred. The insurer will also reduce any future surrender charges by 22 percent. If the settlement is approved, these benefits will go into effect automatically; there will be no claims process, and Class Members will not be required to do anything to receive the full settlement benefit.

"The price of delay is particularly high in this litigation because a substantial portion of the class consists of elderly consumers who cannot wait years for relief,"the memorandum said. "Continuation of the litigation would be extremely expensive and risky."

The proposed Class includes all California individuals who were age 60 years or older when they purchased misleading deferred annuities from Jackson National insurance, between October 24, 2002, and January 12, 2012.