Lawsuit Investigation into Bank, Credit Union Accidental Death Insurance Offers
Last Updated on May 1, 2020
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
- April 28, 2020 – Investigation Closed
- Thank you to everyone who helped contribute to this investigation. At this point, attorneys working with ClassAction.org have decided to close their investigation into this matter. If you still have concerns about your rights, please contact an attorney in your area. The information below was posted when the investigation began and remains for reference only. To view our list of open investigations, please visit this page.
At A Glance
- This Alert Affects:
- Anyone who signed up and was charged for accidental death and dismemberment insurance after receiving a mail solicitation associated with their bank or credit union.
- What’s Going On?
- Attorneys working with ClassAction.org believe this coverage is overpriced and was misleadingly and fraudulently solicited to customers.
- How Would I Know If This Happened to Me?
- The offer came via mail and proposed $1,000 in free insurance with an option to upgrade to $300,000. If you elected for this coverage, you may have been automatically charged a small fee every quarter. It’s likely you only had to check a box on the mail solicitation to opt in to the offer.
- How Could a Class Action Lawsuit Help?
- A class action lawsuit could help consumers get back the money they paid out in premiums.
Attorneys working with ClassAction.org would like to speak to anyone who signed up for accidental death and dismemberment insurance via a mail solicitation sent in association with their bank or credit union.
It is believed that these mail solicitations are misleading and fraudulent and are causing consumers to pay inflated rates for insurance coverage that they will probably never need. Now, attorneys are investigating whether a class action lawsuit can be filed. Read on for more.
What’s Going On Exactly?
Reports have surfaced that a direct marketing company called Affinion Benefits Group (now known as Franklin-Madison Group) is aggressively pitching accidental death and dismemberment insurance to financial institutions as a “customer appreciation” program. Account holders are offered, via mail solicitations associated with their banks or credit unions, $1,000 in free life insurance, along with an offer for an additional $300,000 in coverage in exchange for a nominal fee. Typically, all the person needs to do to sign up for the insurance offer is to check a box, sign and return the letter.
The issue here is that these charges for accidental death and dismemberment insurance may be inflated, with a large portion of the premium payment potentially going back to Affinion/Franklin-Madison in commissions. For instance, where you could get an individual policy for $1.50 for $100,000 in coverage, this insurance often levies an $11 payment for the same coverage.
How Would I Know If I’ve Been Charged?
If you can’t remember whether you signed up for accidental death insurance – this scheme has reportedly been going on for years – your best course of action is to check your bank or credit union statements. The premium payments are automatically debited from your account; you wouldn’t have received a bill for the coverage.
It’s likely that the charge comes from the insurance company itself. And, it’s believed that the following companies have partnered with Affinion and Franklin-Madison in the past:
- Minnesota Life Insurance Company
- Transamerica Premier Life Insurance Company
- Federal Insurance Company
- Mutual of Omaha
- Hartford Life and Accident Insurance Company
- US Life Insurance Company
The charge will likely be small – anywhere from $8 to $100 – and will occur quarterly.
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