Protective Life Insurance $80M Class Action Settlement

Consumers who owned or were a beneficiary of a life insurance policy issued, delivered or administered in California by Protective Life Insurance Co. or West Coast Life Insurance Co. that lapsed for nonpayment of premium between Jan. 1, 2013, and April 22, 2025, may qualify to claim monetary relief or policy reinstatement from a class action settlement.

Protective Life Insurance Co. and West Coast Life Insurance Co. agreed to pay $80 million to resolve a class action lawsuit alleging they failed to comply with California Insurance Code Sections 10113.71 and 10113.72. These statutes require specific procedures and notices before terminating life insurance policies for nonpayment of premiums.

Who can file a Protective Life Insurance claim?

Class members must meet all of the following criteria:

• They owned or were a beneficiary (if the insured is deceased) of an individual life insurance policy issued, delivered or administered in California by Protective Life Insurance Co. or West Coast Life Insurance Co. (or certain other companies Protective administers).
• Their policy lapsed or was terminated for nonpayment of premium on or after Jan. 1, 2013, and before April 22, 2025.
• The policy was not affirmatively canceled or terminated in writing by the policy owner.
• The policy's maturity date did not expire before the insured’s death or, if the insured is still living, before April 22, 2025.

The settlement class includes two main groups:

• Alive population: All living policy owners (or their successors in interest) of an eligible policy where the insured was still alive as of April 22, 2025.
• Deceased population: All policy owners and beneficiaries of an eligible policy where the insured was deceased as of April 22, 2025.

How much can class members get?

• Alive population: Policy owners can request to reinstate their lapsed policy without medical underwriting and without triggering a new contestability period. To do so, they must pay a discounted reinstatement amount calculated as:
• 90% of the total premiums that would have been due from the final lapse date through the reinstatement date AND
• 100% of the minimum amount needed to keep the policy in force for three months after reinstatement.

• Deceased population: Beneficiaries may be entitled to a monetary payment determined by:
• The face value of the policy
• The beneficiary’s vested interest in the policy
• The aggregate face amount of all class policies with valid claims

No payment will exceed 70% of the beneficiary’s interest in the policy’s death benefit.

How to claim an insurance policy payment or reinstatement

Class members can submit an online claim form or download, print, complete and mail the reinstatement or cash payment forms.pdf) (pages 80 and 98, respectively) to mail to the settlement administrator.

Settlement administrator's mailing address: Milan et al. v Protective Life Insurance Company Settlement c/o Settlement Administrator, 1650 Arch St. Suite 2210, Philadelphia, PA 19103

What proof or documentation is required to submit a claim?

To file an online claim, class members must provide the notice ID and confirmation code located on the notice they received in the mail or via email.

All claimants must provide:

• Proof of identity (such as a government-issued ID)
• Social Security number of taxpayer ID number
• Certified copy of the insured’s death certificate (if applicable)
• Legal documents showing authority to act (if claiming as a representative, executor, trustee, etc.)

Payout options

Payments will be made by paper check.

$80 million settlement fund breakdown

The $80,000,000 settlement fund covers.

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $20,000,000
• Attorneys' expenses: Up to $240,000
• Service awards to class representatives: Up to $10,000 each
• Payments to eligible class members: Remaining balance

Important dates

• Claim deadline: Sept. 19, 2025
• Exclusion deadline: Sept. 19, 2025
• Fairness hearing: Oct. 24, 2025

When is the Protective Life Insurance settlement payout date?

Payments to eligible class members will be made after the court grants final approval and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Protective Life Insurance Co. and West Coast Life Insurance Co. failed to comply with California laws requiring a 60-day grace period, advance notice of lapse and the right to designate a third party to receive lapse notices before terminating life insurance policies for nonpayment of premiums.

The companies deny wrongdoing but agreed to settle to avoid the risks and costs of continued litigation.

Sources

1. Class notice and settlement agreement.pdf)
2. Settlement FAQ