Federal Jury Rules Against Transamerica in Battle Over Rates
The case involved the alleged use of racial data to justify rate increases on ‘investor-owned’ policies at a Los Angeles church
A federal jury found in favor of policyholders in a closely watched case that challenged the leeway life insurers have when raising rates on old policies.
The eight-person jury in Los Angeles awarded $5.6 million in damages to an investment group, DCD Partners LLC, that alleged Aegon NV’s Transamerica Life Insurance Co. impermissibly used race-based data when it raised rates by 50%. The jury found that Transamerica breached its insurance-policy contract and an obligation to deal fairly and in good faith, according to the verdict form filed Wednesday.