Security Benefit Life Insurance Company is a Kansas-based provider of insurance and annuity products. Guggenheim Partners LLC recently acquired the company, although the company continues to market its products under the Security Benefit name. A class action lawsuit was filed in a Washington district court against Security Benefit Life Insurance in 2007.
The class action alleges that the National Education Association (“N.E.A.”), an organization representing thousands of teachers and educators nationwide, recommended that its members purchase certain annuities from Security Benefit. In return, the plaintiffs claim, the N.E.A. received a share of the revenue generated by the sale of the annuities.
The plaintiffs claimed that the variable annuities acquired under the N.E.A. retirement plans were improper investments, as they imposed excess fees that depleted their retirement. Among the fees that are sometimes assessed against variable annuities are high surrender charges, management fees, mortality and expense risk charges, administrative fees, underlying fund expenses, and charges for additional “riders.”
The suit also named the National Education Association as a co-defendant, alleging that the organization had breached its fiduciary duties to its members by failing to carry out due diligence in selecting proper investments on behalf of the members.
The United States Court of Appeals for the 9th Circuit recently affirmed a lower court’s dismissal of the plaintiffs’ claims against Security Benefit and the N.E.A.
If you or a loved one has purchased an annuity from Security Benefit Life Insurance Company, acquired by Guggenheim Partners LLC, please contact Evans Law Firm, Inc. today for a free and confidential evaluation of your rights. We can be reached by email at firstname.lastname@example.org, or by telephone at (888) 503-8267 or (415) 441-8669.