STORY FROM: Reinsurance & Arbitration
Reinsurer Denies Accusations of Improperly Imposing Rate Increases on Policyholders
January 21, 2020
NEW YORK — A reinsurer has denied allegations that it improperly imposing cost-of-insurance rate increases for thousands of universal life insurance policies, causing policyholders to either pay the exorbitant rates or lapse on the policies.
In a Jan. 13 answer filed in the U.S. District Court for the Southern District of New York, Lincoln Life & Annuity Company of New York also asserted affirmative defenses of failure to state a claim, statute of limitations, equitable estoppel, waiver, and failure to mitigate damages.
Plaintiff C. Anthony Gonzalez contends that his father was forced to lapse on his $2 million universal life ...