Life insurance is one of those things everyone should have but no one really wants it to be used. One specific type is universal life insurance, which is meant to provide lifetime coverage and includes an interest-bearing savings account that the insurer deducts money from each month to cover the cost of the life insurance.
As it turns out, that monthly deduction was where State Farm had been systematically overcharging its policyholders in Missouri for 23 years.
That’s right — almost 24,000 current and former universal life insurance policyholders had been overcharged, resulting in a class action trial. It was a federal jury in Missouri that recently awarded those policyholders $34.3 million.
Overcharging Policyholders is a Common Action
While the aforementioned case is a solid win for those policyholders, it is not the only case that involves overcharging. There are several cases across the country that involve insurance companies overcharging universal life insurance policyholders.
The reason they get away with it is because insurance companies are able to hide their overcharging behind something called a “cost of insurance rate.” The average person does not know the math behind the actual rate they should be charged and the one their insurance company is overcharging them with.
When it comes down to it, the only real way to know you are being overcharged is with the help of an experienced attorney. In Alabama, the best place to turn to is the law firm of Johnstone Carroll, LLC.
Experienced Attorneys Fight Insurance Companies
It is easy to believe that an insurance company is on your side and looking to help you. But the truth is that more often than not, they have their own agenda and it does not involve getting you what you deserve. The insurance claim attorneys at Johnstone Carroll, LLC are aware of this and knows what it takes to get you the justice you deserve.
They handle cases involving personal lines of insurance (homeowners, life, homeowners, health, etc.), as well as commercial lines of insurance. Additionally, the law firm also handles class action cases and complex litigation. With the proper resources, they help clients across the state.
In order to get the help and justice you deserve, fill out the online form to contact them today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.