Des Moines, Iowa-based Principal Life Insurance Co. has settled for $374.2 million a class action lawsuit alleging its agents engaged in sales fraud.
The suit alleged that agents for Principal used misleading sales practices including a “vanishing premiums” scheme in which an agent convinces consumers that the policy’s cash value will perform well enough to make premium payments unnecessary after a few years.
Other charges included overstating the performance of cash value policies and annuities, selling insurance as an investment product and targeting senior citizens for annuity purchases.
Under the settlement, Principal will reimburse roughly one million current and former life insurance policy and annuities holders.
Topics Lawsuits
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: The ‘Unbundled’ Insurer Emerges in Age of AI as Value Chain Fragments 
Agency Network SIAA Acquires MGA Canopy Specialty Insurance 
McDonald’s Hit With Class Action Alleging AI-Powered Menu Price-Fixing 
Gronkowski Now Pitchman for eMaxx, a Reciprocal With a Different Playbook 
