Ever wonder about Universal Life Insurance? A painstaking definition of at least the UL policies at issue has been given by the District Judge in Adv. Trust & Life Escrow Serv's, LTA v. N. Am. Co. for Life & Health Ins., ___ F. Supp. 3d ___, No. 4:18-cv-00368-SMR-HCA, 2022 WL 883750, at *1 (S.D. Iowa March 22, 2022):
Universal life insurance is a type of permanent life insurance. Contrasted with standard term life insurance, the Class Policies [i.e., the 2 policies issued by Defendant North American before the Court in this putative class action] combine a death benefit with an investment, savings, or interest-bearing component (“Savings Component”). Typically, life insurance policies such as the Class Policies deposit premium payments into the Savings Component and the insurer will deduct policy-authorized monthly charges. The Class Policies are flexible-premium policies, meaning there is no fixed monthly premium the insured must pay to keep their policy active, aside from the specified monthly charges. If the funds in the policy account are insufficient to pay these monthly charges, the policy will go into grace and lapse after the grace period expires.
Clearly, a universal life insurance policy is not your father's CGL.
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