TransamericaLife Insurance Co. has been named the defendant in a class-actionlawsuit over raised premiums.
According to a May 7 news release by the law firm EmersonScott, the plaintiffs allege that Transamerica "massively" increasedlife policy premiums and falsely stated that the policies' terms allowed theincrease. Plaintiffs argue that the insurer raised rates to counteract pastlosses and to make the policies more profitable by forcing policyholders whocould not pay the new premiums to drop out.
Monthly deductions from the plaintiffs' bank accounts set upto pay the policy premiums increased by 38% without their knowledge, they said.Plaintiffs are seeking "damages and equitable relief" in the suit.
Gregory Tucker, a Transamerica spokesman, said in an emailthat the policies in question were universal life insurance policies that didnot have fixed rates, rather than term policies that use a specific premiumamount. The company previously had been charging the policyholdersless than the maximum premium allowed, he said.
"No policy owner, including the plaintiffs in therecently filed litigation, is being charged a rate greater than the maximumallowable rate specified in [their] policy," he said. "Transamericais in full compliance with its contractual obligations, and intends to contestvigorously the recently filed litigation."