Facts

Peter Bezich filed a class action against The Lincoln National Life Insurance Co. for alleged contract breach.

PLAINTIFF'S CONTENTIONS:
Defendant allegedly violated the terms of plaintiff and potential class members' policy terms when it charged them cost of insurance in excess of mortality charges. Defendant also allegedly breached the terms by accounting for non-mortality factors, recovering expenses through CIO charge in excess of the administrative fee, and failing to adjust CIO rates.

DEFENDANT'S CONTENTIONS:
Defendant maintained that its actions were appropriate and permissible under the terms of the policy.

Result

The parties reached a settlement. As part of the settlement, Lincoln National agreed to automatically issue term life insurance to eligible class members at no cost. The term life insurance will be in the form of a "Term Life Insurance Certificate." The coverage amounts and length would depend on the insured's age, face amount of the policy, and the class member's current standing as a policyholder.

Other Information

FILING DATE: June 19, 2009.