U.S. District Court Grants Preliminary Approval of Premium Tax Settlement Class
A U.S. District Court preliminarily approved a settlement for premium tax claims against life insurance companies, finding the terms fair and reasonable.Summary
The U.S. District Court for the Southern District of New York has preliminarily approved a proposed class action settlement regarding premium tax claims against life insurance companies. The court determined that the settlement is fair, reasonable, and adequate, granting preliminary certification to the settlement class. The plaintiffs, investment entities, alleged that the defendants improperly assessed premium tax charges on universal life insurance policies when policyholders changed their registered addresses to states with lower premium tax rates or to certain specified states. The settlement resolves the counts related to the premium tax claims; however, a separate breach of contract claim regarding the cost of insurance rates remains pending.
(Source：Bloomberg Tax News)