Midland National Life Insurance

September 2014: A federal judge granted final approval of this settlement.

June 2014: A federal judge preliminarily approved a settlement to a class-action lawsuit against Midland National Life Insurance Company. The complaint, which was originally filed in 2011, alleges that, among other things, the company deceptively markets its deferred annuities. According to the complaint, Midland’s sales brochures market the annuities as a retirement vehicle with bonuses and asset accumulation linked to stock indexes and tax-deferred growth without also informing consumers that the company shifts the cost of bonuses and sales commissions to the consumers over time. According to the settlement terms, the benefit each class member is eligible to receive depends upon the status of the class member’s annuity as of the benefit determination date. For more information, go to www.VaccarinoSettlement.com. A final fairness hearing is scheduled for September 22, 2014. (Vaccarino et al v. Midland National Life Insurance Company and Does 1-100, Case No. 11-cv-05858, C. D. CA.).

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One Response to Midland National Life Insurance

  1. MNL U. says:

    Midland National Life Insurance Company is notorious in the life insurance industry as a serial defendant in class action lawsuits brought by seniors and other consumers that have alleged Midland National’s sales practices to be unethical.

    Midland National’s business model has resulted in regulatory actions, Attorney General investigations, and class action lawsuits by policy holders in multiple states. The most recent incident was in February this year when Midland National agreed to pay a $1.3 million fine as part of a settlement with the California Department of Insurance and further agreed to make reforms to its business practices after a probe showed Midland National was allegedly misleading senior citizens when selling annuities deemed inappropriate.

    This fine may have been a result of Midland National making a $31 million dollar payment last year as part of a settlement of a federal class action lawsuit in California that had alleged that Midland National had used deceptive sales practices in selling their products, including annuities to seniors. Sammons, Midland National, and its sister company North American for Life and Health have paid settlements in many states over the past ten years as a result of their sales practices and the adverse effect it has had on the senior citizens that have purchased them.

    So far, Midland National has managed to avoid serious damage to their rating and reputation by including non-disclosure agreements in settlements of the litigation brought against them. This tactic has allowed Midland National to prevent consumers and their own agents and employees from sharing any knowledge they may have of criminal activity with law enforcement agencies.

    To be fair, a life insurance company being sued is not unusual; however, a life insurance company being sued by thousands of its policy holders across the country is a red flag. Being sued by a state’s chief law enforcement officer is so unusual it constitutes a flashing neon sign behind the red flag. Being sued under provisions of the RICO (Racketeer Influenced and Corrupt Organizations) Act as they have been on several occasions adds bells and sirens to the neon sign and red flag. To be sued on multiple occasions over an almost thirty year period for various and differing schemes would seem to be a criminal indictment waiting to happen.

    Midland National has brought much of this on themselves. As the policy holder complaints began to accumulate Midland National had the opportunity to resolve them and avoid litigation. They chose not to. That action constituted a clear policy of contempt for their customers, and also for their agents whom are faced with recommending a company that places profits ahead of those policy holders that trusted them.

    While Midland National Life’s unethical sales practices and legal problems have not yet substantially affected their rating, it is something for consumers and life insurance agents to watch.

    To research Midland National Life Google “Midland National Life” ratings or “Midland National Life” reputation. To review Midland National Life抯 legal problems in an easy to read format visit http://www.MidlandNationalLifeUpdate.se.

    Midland National Life Insurance Company
    One Sammons Plaza
    Sioux Falls, SD 57193

    Website Addresses Midland National Life’s Legal Problems And The Effect On Their Insurance Rating

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