NU Online News Service, Feb. 17, 2004, 6:10 p.m. EST – A Massachusetts state court in Boston has certified a suit filed against Savings Bank Life Insurance Company of Massachusetts as a class action.[@@]
The suit, Richard Goldstein vs. Savings Bank Life Insurance Company of Massachusetts, accuses the Woburn, Mass., insurer of underpaying dividends on SBLIC insurance policies.
The suit asserts breach of contract, breach of fiduciary duty and violations of law in relation to the allegation that there was an underpayment of dividends.
The class that was certified includes about 420,000 policyholders who bought contracts between 1992 and 2002 that were entitled to dividends from surplus or profits.
A trial date is set for Sept. 13. Arguments are set to be heard at a May 21 hearing, at which time a motion for summary judgment could be filed. The suit was filed in May 1998.
Among the claims, according to Jason Adkins, an attorney for plaintiffs, is that SBLIC targeted 7% for reserve funds, a lower amount than the 12% each domestic life insurance company is entitled to hold in its reserve funds.