Transamerica $110M Life Insurance Class Action Settlement

Individuals who owned or currently own a Transamerica Life Insurance Co. universal life insurance policy known as Direct Recognition Life 10 or Direct Recognition Life 11 that was in effect on Jan. 1, 2016, may be eligible to receive a cash payment from a $110 million award from a class action settlement.

Transamerica agreed to pay $110,000,000 to settle a class action lawsuit alleging the company failed to properly credit certain cash value increases (CVIs) to eligible Direct Recognition Life (DRL) insurance policies and did not act in good faith regarding those credits.

Who is eligible for a settlement payout?

Class members must meet all the following criteria:

• They own or previously owned a Transamerica universal life insurance policy that was in effect on Jan. 1, 2016.
• The policy was known by the product names Direct Recognition Life 10 or Direct Recognition Life 11, or by the attribute codes DRL-10 or DRL-11.
• The policy was established and defined by a group master policy, group insurance certificate and issue illustration.

How much is the class action payment?

Pro rata cash payment: Eligible class members can receive a pro rata cash payment of $100 or more, for each qualifying policy, from the net settlement fund. The final payment amount will be determined by the court-approved plan of allocation.

Other settlement benefits:

• Transamerica has agreed not to rescind, revoke or reverse certain credits paid under the bonus crediting project.
• For eligible DRL policies that remain in force on their 40-year policy anniversaries, Transamerica will credit the 40-year guaranteed CVI.
• Transamerica will not seek to void, rescind, cancel, declare void or deny certain death claims based on alleged lack of insurable interest or alleged misrepresentations made in connection with the original application process.

No claim form required

Eligible class members do not need to file a claim to receive payment.

Payout options

Paper check mailed to the address on file.

$110 million class action settlement fund

The $110,000,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $36,666,666.67, plus $5,835,397.97 from a separate fund for the bonus crediting project
• Service awards to class representatives: Up to $25,000 ($50,000 total)
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: Oct. 2, 2026
• Fairness hearing: Nov. 9, 2026

When is the Transamerica life insurance policy settlement payout date?

The settlement administrator will mail payments to eligible class members approximately 90 days after the court grants final approval of the settlement.

Why is there a class action settlement?

This class lawsuit alleged Transamerica Life Insurance Co. failed to credit certain cash value increases to eligible DRL policies and did not act in good faith regarding those credits.

Transamerica denied any wrongdoing or liability but agreed to settle to avoid the risks and costs of continued litigation.

Sources

1. Class notice
2. Settlement FAQ
3. Settlement agreement