Lawsuit Claims TransAmerica Robbed Life Insurance Policyholders by Withholding Promised Interest

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TransAmerica Life Insurance Company is on the receiving end of a proposed class action that claims the company unlawfully diminished the cash value of policyholders’ life insurance certificates.

The plaintiff in the case claims he took out a life insurance policy with the defendant in September 1988 and later in August of 1996, accepting the defendant’s “Enhancement ’96 offer.” The terms of the offer, the case says, promised to add one percent interest to the cash value of the man’s life insurance certificate “for the next eighteen (18) years.” The suit argues that instead of crediting the plaintiff’s account with a minimum of five percent interest each year between August 9, 1996 and August 8, 2014, the defendant failed to add the additional one percent and thereby robbed the plaintiff of the full value of his policy.

Furthermore, the case alleges the defendant charged policyholders an unlawful “Asset Management Fee” that was not authorized by their policies.