PHT Holding II LLC v. North American Company for Life and Health Insurance
North American Company COI Settlement
Case No. 4:18-cv-00368

Welcome to the North American Company COI Settlement Website

If you own or owned a Classic Term UL I or II life insurance policy issued or insured by North American Company for Life and Health Insurance or its predecessors, your rights may be affected by a class action lawsuit.

What is the lawsuit about?

PHT Holding II LLC has filed a class action against North American Company for Life and Health Insurance (“Defendant”) for allegedly imposing unlawful cost of insurance (“COI”) charges on Classic Term UL I and II policyowners. The class action lawsuit alleges that Defendant breached its contracts with certain policy owners. Plaintiff’s policy states, in part:

Cost of Insurance. The cost of insurance for the Insured is determined on a monthly basis. Such cost is calculated as (1) times (2), where: (1) is the cost of insurance rate as described in the Cost of Insurance Rates section. (2) is the net amount at risk, as defined in the Changing Death Benefit Options provision.

Cost of Insurance Rates. The monthly cost of insurance rate is based on the sex, attained age, and rating class of the Insured. Policy duration is also a factor in determining the monthly cost of insurance rates. Attained age for the initial Specified Amount means age nearest birthday on the prior policy anniversary. Attained age for any increase in Specified Amount or increase in net amount at risk applied for when changing Death Benefit options means age nearest birthday on the prior anniversary of the date such increase became effective. Monthly cost of insurance rates are determined by us, based on our expectations as to future mortality experience. Any change in cost of insurance rates applies to all individuals of the same class as the insured. Under no circumstances are cost of insurance rates for insureds in that standard risk class greater than those shown in the Table of Guaranteed Maximum Insurance Rates. Age nearest birthday is used in determining such guaranteed maximum rates.

Plaintiff alleges that Defendant breached these contractual provisions because Defendant imposed COI charges that were not based on its expectations as to future mortality experience, and that Plaintiff and members of the Class have been damaged as a result. Defendant denies Plaintiff’s claims and asserts multiple defenses, including that COI rates were set in compliance with the contract, have never been changed, and remain in compliance with the contract.

Who is included?

The Class consists of all current and former owners of Classic Term UL I or II issued or insured by North American Company for Life and Health Insurance, or its predecessors, during the Class Period.

The “Class Period” starts on the following dates through the date of final judgment in this action:

Start Date of Class Period Classic Term UL I or II Issue State
October 30, 2008 Illinois, Indiana, Iowa, Kentucky, Louisiana, Rhode Island, West Virginia, 
and Wyoming
October 30, 2010 Montana and Ohio
October 30, 2012 Alabama, Arizona, Connecticut, Georgia, Hawaii, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, New York, North Dakota, Oregon, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin
October 30, 2013 Arkansas, Florida, Idaho, Kansas, Missouri, Nebraska, Oklahoma, 
and Virginia
October 30, 2014 California, Pennsylvania, and Texas
October 30, 2015 Alaska, Colorado, Delaware, Maryland, New Hampshire, North Carolina, South Carolina, and Washington, D.C.

Legal Rights and Options

Option/Deadline Event
Do Nothing Get certain benefits from the Settlement — Automatically receive an Accumulation Value Credit on active policy(ies) or a cash payment in the mail if your policy(ies) is terminated at the time of distribution, be bound by the Settlement, and give up your right to Defendant for the claims that were or could have been alleged in this case through the Final Approval Date.
Exclude Yourself
Deadline: October 30, 2023
Remove yourself from the Settlement Class, get no benefits from the Settlement, and get no benefits from the Settlement. Keep your right to sue Defendant, at your own expense, for the claims in this case. For more information, please see FAQ 14
File an Objection
Deadline: October 30, 2023
Tell the Court what you do not like about the Settlement. The purpose of an objection to the Settlement is to persuade the Court not to approve the proposed Settlement. A successful objection to the Settlement may mean that the objector and other members of the Settlement Class are not bound by the Settlement. For more information, please see FAQ 20.

For More Information

Visit this website often to get the most up-to-date information.

North American Company COI Settlement Administrator
c/o JND Legal Administration
PO Box 11037
Seattle, WA 98111