A Locke Lord team of Carl Scherz, Cindy Timms and Taylor Levesque (all of Dallas) obtained a ruling in favor of Wilco Life Insurance Company at the U.S. Court of Appeals for the Eleventh Circuit, a significant outcome for the life insurance industry with notable implications for similar cases. Anderson v. Wilco Life Insurance Company was a putative Georgia state-wide class action that challenged Wilco Life’s ability to adjust cost-of-insurance (COI) rates on certain universal life insurance policies. The district court granted Wilco Life’s motion to dismiss, holding the policy language gave the company discretion to set COI rates anywhere below the maximum guaranteed rates. The Eleventh Circuit affirmed, agreeing that Wilco Life’s interpretation was the only reasonable interpretation.
Posted on November 16, 2021