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Insurance Fraud

Insurance industry fraud and collusion by executives, agents, brokers, lenders and others is one of the most costly crimes in the United States. Some experts have estimated that annual cost of white collar crime in the insurance industry to be over $120 billion nationally. Recent legislative proposals seek to curtail anticompetitive behavior within the industry. However, in the absence of comprehensive regulation, Robbins Geller has played a critical role as private attorney general in protecting the rights of consumers against insurance fraud and other unfair business practices within the insurance industry.

Specifically, Robbins Geller attorneys have long been at the forefront of litigating race discrimination issues within the life insurance industry. For example, the Firm has fought the practice by certain insurers of charging African-American and other people of color more for life insurance than similarly situated Caucasians. Robbins Geller recovered over $400 million for African-Americans and other minorities as redress for civil rights abuses, including landmark recoveries in McNeil v. American General Life & Accident Insurance Company; Thompson v. Metropolitan Life Insurance Company; and Williams v. United Insurance Company of America.

The Firm’s attorneys also fight on behalf of elderly victims targeted for the sale of deferred annuity products with hidden sales loads and illusory bonus features. Sales agents for life insurance companies such as Allianz Life Insurance Company of North America, Midland National Life Insurance Company, and National Western Life Insurance Company targeted senior citizens for these annuities with lengthy investment horizons and high sales commissions. Robbins Geller recovered millions of dollars for elderly victims and seeks to ensure that senior citizens are afforded full and accurate information regarding deferred annuities.

Robbins Geller attorneys also stopped the fraudulent sale of life insurance policies based on misrepresentation regarding how the life insurance policy would perform, the costs of the policy, and whether premiums would “vanish.” Purchasers were also misled about the financing of a new life insurance policy, falling victim to a “replacement” or “churning” sales scheme where they were convinced to use loans, partial surrenders or withdrawals of cash values from an existing permanent life insurance policy to purchase a new policy.

Robbins Geller has taken a leading role in many insurance fraud cases, including:

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