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Federal Jury Rules Against Transamerica in Battle Over Rates

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.

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