North American Company for Life and Health Insurance
A previous lawsuit was originally brought (by other firms) against North American, a part of the Sammons Annuity Group division. The complaint alleged that North American imposed surrended charges on senior consumers and failed to disclose certain important information in the course of marketing and selling their deferred annuity products.
North American Company for Life and Health Insurance is a major provider of insurance products and annuities that are marketed to senior citizens nationwide and in California. Plaintiffs in several states have filed at least two separate class action suits against North American, the first of which was recently settled, while the second is pending.
One of the cases mentioned above was a 2006 class action suit brought in Los Angeles, California state court by California seniors who purchased deferred annuities from North American Company for Life and Health Insurance and its sister company, Midland National Life Insurance Company. Both of these companies are owned by a parent company, Sammons Enterprises, Inc. The California plaintiffs alleged that the two companies adopted a business plan targeting seniors for the sale of annuities, and that Midland National Life Insurance and North American Company for Life and Health Insurance each failed to disclose to purchasers material facts related to the annuities. The plaintiffs asserted their claims under California’s Unfair Competition Law, as well as claims for fraud, breach of contract, breach of the implied covenant of good faith and fair dealing, and declaratory relief. A Los Angeles superior court judge certified the class in 2008 as: “All persons who, while California residents age 65 or older, and on or before November 5, 2008, purchased one or more of the following annuity products from Midland National Life Insurance Company or North American Company for Life and Health Insurance:
- Bonus 5
- Bonus 10
- Bonus 11
- Legacy Bonus 11
- Legacy Select
- Veridian Plus
- NA Bonus 10
- Market Choice Bonus
- Heritage Bonus
- Heritage Max
- Market Choice III
After class certification and requests for re-consideration, North American Company for Life and Health Insurance and Midland National Life Insurance the parties agreed to settle the class action. North American Company for Life and Health Insurance and Midland National Life denied any wrongdoing in this case.
A second class action was filed against North American Company for Life and Health Insurance in a federal district court in Illinois. The plaintiffs brought causes of action against North American Company for Life and Health Insurance including:
- Violation of the Rackateer Influenced and Corrupt Organizations Act (“RICO”);
- Breach of contract;
- Violation of certain consumer protection laws; and
- Unjust enrichment.
As of late 2012, the Illinois district court had denied North American’s request to have the case dismissed, and the suit is currently proceeding toward trial.
The Evans Law Firm was not involved in either of the above cases.
Evans Law Can Help
If you or a loved one has purchased a deferred annuity in California from North American Company for Life and Health Insurance or Midland National Life Insurance Company, please contact Evans Law Firm, Inc. today for a free and confidential evaluation of your rights. We can be reached by email at email@example.com, or by telephone at (415) 441-8669.