Welcome to the Lincoln Cost of Insurance Litigation Informational Website

The Lincoln National Life Insurance Company (“Lincoln”) is accused of overcharging owners of universal life insurance policies. Although the life insurance policies state that cost of insurance rates shall be based on Lincoln’s “expectations of future mortality experience,” Lincoln is accused of charging its customers substantially more than that.

Monthly cost of insurance rates will be determined by the company, based on its expectations as to future mortality experience. Any change in cost of insurance rates will apply to all individuals of the same class as the insured. In determining the monthly cost of insurance, the company will add the amount of the Flat Extra Monthly Insurance Cost, if any, show in the Policy Specifications. If the person insured is in a rated premium class, the monthly cost of insurance rates for a standard (non-rated) risk will be multiplied by the Risk Factor, if any, show in the Policy Specifications. Under no circumstances will the cost of insurance rates ever be greater than those specified in the “Table of Guaranteed Maximum Life Insurance Rates."

Sample Policy Language

On July 17, 2018, TVPX ARS, Inc. filed a class action lawsuit against Lincoln alleging the company’s unlawfulness. Included within the putative class are potentially hundreds of thousands of policies issued by Lincoln and companies that Lincoln has acquired, including: Alexander Hamilton Life Insurance Company, Jefferson-Pilot Life Insurance Company, Kentucky Central Life Insurance Company, Chubb Life America Company, and Volunteer State Life Insurance Company. Furthermore, a parallel lawsuit has also been brought by a different plaintiff against Lincoln’s subsidiary First Penn-Pacific Life Insurance Company, alleging similar behaviors.

The marketing names of the Lincoln impacted products can be viewed here and First Penn Products here.

Susman Godfrey LLP has been appointed interim class counsel. If you would like more information about these lawsuits, or would like to become involved, you can email interim class counsel at lincolncoi-sg@susmangodfrey.com, or contact one of the following attorneys: Steven Sklaver, Seth Ard, and Ryan Kirkpatrick.