Fighting Insurance Company Abuses with an Experienced Life Insurance Fraud Attorney
Over the course of the past decade, a tremendous amount has been reported
in the media about problems in the healthcare system. This includes extensive
discussions about how health insurance companies have engaged in practices
that are detrimental to consumers.
During the same time period, next to nothing has been reported about business
practices in the life insurance industry. Recently, concerns have surfaced
about the manner in which life insurance companies are dealing with universal
life insurance policies. Concerns have been raised about potential life
Evidence is beginning to mount that certain life insurance companies may
be engaging in fraudulent practices in regard to premium increases associated
with universal life insurance policies. The life insurance fraud lawyer
team at The Doan Law Firm are now on the case to assist consumers who
believe they may have been victimized by fraudulent practices by life
Universal Life Insurance Policy Basics
A universal like insurance policy is defined as a cash value life insurance
policy. What this means is that premium payments above and beyond the
actual cost of insurance are credited to the cash value of a particular
universal life insurance policy. In other words, a policyholder's
premiums are designed to pay only the actual cost associated with a particular
insurance policy. Any amount above and beyond the cost of insurance is
returned to the policyholder in the form of additional funds added into
his or her investment element of an insurance policy.
Universal Life Insurance Premiums
Premiums assessed for a particular universal life insurance policy are
determined using actuarial data. This essentially means that the amount
of premiums is based on a mathematical analysis associated with an insured's
projected longevity and associated factors.
The amount charged for premiums is not based on any other consideration.
In fact, utilizing other factors beyond actuarial considerations to establish
a universal life insurance premium rate would be counter to existing law.
Universal Life Insurance Interest Payments
Not only do universal policies of this nature have a life insurance element,
they are also investment tools. When a person takes out a universal like
insurance policy, he or she is guaranteed an annual rate of return based
on a set interest percentage. The rate of return cannot be changed.
Since the start of the Great Recession of 2008, the United States has been
home to an extended period of low interests rates. The Federal Reserve,
which is responsible for setting interests rates in the United States,
has kept them down to practically nothing. This has had some unanticipated
results, including insurance companies faced with a lower return on their
Despite this low-interest rate environment, insurance companies must keep
their obligation to policy holders in regard to the guaranteed annual
rate of return. With the prevailing low-interest rates that have prevailed
since 2008, insurance companies are experiencing a reduced rate of return
on their own investments.
Potential Life Insurance Fraud
A life insurance company is only permitted to raise the premium on a universal
policy because of mortality and associated expenses. In recent times,
some life insurance companies have hiked up the premiums on universal
life insurance policies a significant amount.
In examining these hefty increases, there appears to be no correlation
between the premium increase and mortality and other legitimate considerations.
Unrelated increases of this type likely do not meet legal muster. In simple
terms, these premium increase have all the ear markings of life insurance fraud.
Retain a Life Insurance Fraud Lawyer
If a consumer has noticed an increase in his or her life insurance premium
charge, particularly a relatively substantial one based on historical
considerations, he or she should contact an insurance fraud lawyer at
The Doan Law Firm. The legal team at The Doan Law Firm has the depth of
experience necessary to unravel even a complicated case of life insurance fraud.
A life insurance fraud lawyer from The Doan Law Firm will schedule an initial
consultation with a policyholder who believes that he or she is being
victimized by an unscrupulous life insurance company. A life insurance
fraud attorney will undertake a preliminary review and evaluation of a
case. In addition, a lawyer will provide answers to the questions a consumer
might have regarding life insurance fraud and is or her rights.
An appointment with an experienced life insurance fraud lawyer can be scheduled
by calling 800-349-0000. The life insurance fraud hotline is taking calls
around the clock, 24 hours a day, 365 days a year. There is no charge
for an initial consultation with a consumer concerned about potential
life insurance fraud.
When it comes to a life insurance fraud cause, an attorney from The Doan
Law Firm charges no fee unless and until a favorable settlement or judgment
in a lawsuit is obtained on behalf of a client.