If you purchased an Indexed Universal Life (IUL) insurance policy from Global Atlantic Financial Group or Accordia Life Insurance Company, you may have been the victim of deceptive sales practices. In July 2023, Global Atlantic made the unprecedented decision to stop selling new IUL policies. The company cited declining performance and business challenges. This decision has left thousands of policyholders questioning whether they received misleading information about their policies’ potential returns and risks.
At RP Legal LLC, we represent victims of investment fraud nationwide. Our experienced attorneys have recovered over $100 million for clients harmed by deceptive insurance practices. Additionally, we secured a recent $1.5 million verdict against Pacific Life Insurance Company. If you believe someone sold you a Global Atlantic or Accordia IUL policy under false pretenses, we can help you understand your legal options. Furthermore, we can pursue the compensation you deserve.
Understanding Global Atlantic’s IUL Business Suspension
Why Global Atlantic Stopped Selling IUL Products in 2023
In June 2023, Global Atlantic Financial Group announced it would cease selling new Indexed Universal Life insurance policies effective July 1, 2023. This decision marked the end of a dramatic decline in the company’s IUL business. The business had fallen from 16% of their total business in 2013 to less than 3% by 2023, according to FINRA regulatory filings.
The company’s decision to exit the IUL market was not made lightly. Industry reports indicate that Global Atlantic faced significant challenges with policy performance, regulatory pressures, and the low interest rate environment. These factors made IUL products increasingly difficult to manage profitably, similar to issues documented by the SEC regarding indexed annuities. The suspension affected several key products, including:
- Lifetime Builder ELITE
- Global Accumulator IUL
- Lifetime Foundation ELITE
This business decision raises serious questions about whether Global Atlantic knew or should have known about the fundamental problems with their IUL products. The company continued actively marketing these products to consumers even while facing these challenges. The timing of the suspension, combined with the company’s declining IUL business over the previous decade, suggests that performance issues may have been building for years.
The Connection Between Accordia Life and Global Atlantic
Many consumers are unaware that Accordia Life Insurance Company connects closely to Global Atlantic Financial Group. Global Atlantic has used Accordia Life as a subsidiary and tradename for certain IUL products. This creates confusion in the marketplace about which company actually issued their policies, similar to issues we’ve seen with other premium-financed IUL cases.
This corporate structure can complicate legal claims. Policyholders may not understand which entity bears responsibility for their policy’s performance or the representations made during the sales process. Our attorneys have revealed that problems with Accordia-branded IUL products were a significant factor in Global Atlantic’s decision to exit the IUL market entirely.
The relationship between these entities is particularly important for legal purposes. It affects which companies can be held liable for deceptive sales practices and policy failures. Understanding this corporate structure is crucial for building effective legal claims against the responsible parties.
Common Deceptive Practices in Global Atlantic IUL Sales
Misleading “Tax-Free Retirement” Marketing
One of the most pervasive deceptive practices in IUL sales involves marketing these complex insurance products as “tax-free retirement” solutions. Global Atlantic agents and affiliated financial advisors frequently promoted IUL policies as alternatives to traditional retirement accounts like 401(k)s and IRAs. They claimed these policies offered superior tax advantages and guaranteed growth.
This marketing approach is fundamentally misleading because:
- IUL policies are not retirement accounts and do not offer the same tax protections
- Policy loans used to access cash value can trigger taxable events if the policy lapses
- The “tax-free” benefits depend on the policy remaining in force, which requires ongoing premium payments
- Rising insurance costs can cause policies to fail, creating unexpected tax liabilities
The reality is that IUL policies work nothing like Roth IRAs or traditional pensions, despite being marketed as such. The tax consequences of policy failure can be devastating, as detailed in our guide on why IULs are a bad investment. These consequences leave retirees with large tax bills and no retirement savings.
Unrealistic Performance Illustrations
Agents often sold Global Atlantic IUL policies using illustrations that showed unrealistic returns based on historical market performance. These illustrations typically assumed consistent annual returns of 7-8% or higher, according to the National Association of Insurance Commissioners (NAIC). However, they failed to adequately explain how insurance costs, fees, and market volatility would affect actual policy performance.
The problem with these illustrations is that they:
- Failed to account for the impact of insurance charges that increase over time
- Used overly optimistic assumptions about market performance
- Did not adequately explain how cap rates and participation rates would limit upside potential
- Minimized or ignored the risk of policy failure due to poor performance
Many Global Atlantic policyholders discovered that their actual policy performance fell far short of the illustrated projections, leading to potential breach of fiduciary duty claims. This left them with policies that required significantly higher premiums to maintain coverage or faced the risk of lapse.
Hidden Fees and Charges That Erode Policy Value
IUL policies are notoriously complex financial products with multiple layers of fees and charges, as explained in our detailed analysis of IUL fees. These can significantly erode policy value over time. Global Atlantic policies typically included:
- Cost of Insurance (COI) charges that increase as the insured ages
- Administrative fees for policy maintenance
- Surrender charges that penalize early withdrawals
- Loan interest on policy loans that can compound over time
- Market value adjustments that can reduce cash value
Many policyholders did not receive adequate information about how these charges would affect their policy’s long-term performance. The cumulative impact of fees and charges, combined with market volatility, often resulted in policies that performed far worse than illustrated during the sales process.
Legal Claims Against Global Atlantic and Accordia
Breach of Fiduciary Duty
Insurance agents and financial advisors who sold Global Atlantic IUL policies may have breached their fiduciary duty to clients by:
- Recommending unsuitable products based on the client’s age, financial situation, or investment objectives
- Failing to conduct adequate due diligence on the products they were selling
- Prioritizing their own commissions over their clients’ interests
- Not properly explaining the risks and limitations of IUL policies
When agents hold themselves out as financial advisors or retirement planning professionals, they may have a heightened duty to act in their clients’ interests, as outlined by the SEC’s Regulation Best Interest. Our IUL lawsuit lawyers can help determine if recommending complex IUL policies without proper analysis of alternatives or adequate risk disclosure constituted a breach of this duty.
Misrepresentation and Fraud Claims
Many Global Atlantic IUL sales involved material misrepresentations about:
- The likelihood of achieving illustrated returns
- The tax consequences of policy loans and potential policy failure
- The comparison between IUL policies and traditional retirement accounts
- The safety and security of the investment component
- The long-term costs of maintaining the policy
These misrepresentations may constitute investment fraud if they were made knowingly or with reckless disregard for the truth. The fact that Global Atlantic ultimately exited the IUL market due to performance problems suggests that the company may have been aware of fundamental issues with these products. This awareness may have existed while they were still being actively marketed.
Failure to Disclose Material Risks
Insurance companies and their agents have a duty to disclose material risks associated with their products, as required by state insurance regulations. For Global Atlantic IUL policies, material risks that were often inadequately disclosed include:
- The risk of policy failure due to poor market performance
- The impact of rising insurance costs on policy sustainability
- The potential tax consequences of policy loans and lapses
- The complexity of the crediting methodology and its limitations
- The company’s declining commitment to the IUL market
The failure to adequately disclose these risks can form the basis for legal claims. This is particularly true when combined with aggressive marketing that emphasized potential benefits while minimizing risks, as documented in our case results.
How RP Legal LLC Can Help Global Atlantic IUL Victims
Our Track Record with IUL Litigation
RP Legal LLC has established itself as a recognized authority in IUL litigation nationwide. Our founding partner, Robert G. Rikard, has recovered over $100 million for clients harmed by deceptive insurance practices. Additionally, he has litigated hundreds of IUL cases across the country.
Our recent successes include:
- $1.5 million verdict against Pacific Life Insurance Company in May 2024 (Karen Shelstad v. Ronald R. Hill and Pacific Life Insurance Company)
- Participation on MDL steering committees for major insurance litigation
- Class action leadership in complex financial fraud cases
- Recognition as AV® Preeminent rated attorneys by Martindale-Hubbell
We understand the complex legal and technical issues involved in IUL litigation. Furthermore, we have the experience necessary to hold insurance companies accountable for deceptive practices. Our team includes attorneys who regularly speak at continuing legal education seminars on investment losses and insurance fraud.
No Upfront Fees – Contingency Representation
We represent IUL fraud victims on a contingency fee basis. This means you pay no attorney fees unless we recover compensation for you. This arrangement allows victims to pursue justice without the financial burden of paying hourly legal fees.
Our contingency fee structure aligns our interests with yours – we only succeed when you do. This approach has enabled us to take on complex cases against well-funded insurance companies. Additionally, it has helped us achieve meaningful results for our clients, as shown in our case results.
We also provide free initial consultations to evaluate your case and explain your legal options. During this consultation, we will review your policy documents and analyze the sales process. Furthermore, we will help you understand whether you may have valid claims against Global Atlantic, Accordia, or the agents who sold you the policy.
Steps to Take If You Own a Global Atlantic IUL Policy
Gathering Your Policy Documents
If you own a Global Atlantic or Accordia IUL policy, the first step is to gather all relevant documents, including:
- Your original policy contract and any amendments
- Sales illustrations and marketing materials provided during the sales process
- Annual statements showing policy performance
- Records of premium payments and any policy loans
- Correspondence with the insurance company or your agent
- Notes from meetings or phone calls about the policy
These documents will help our investment fraud attorneys understand how your policy was sold and whether deceptive practices were involved. Pay particular attention to any materials that promised specific returns or compared the IUL to other investment or retirement products.
Understanding Your Legal Options
Depending on the circumstances of your case, you may have several legal options:
- Direct claims against Global Atlantic or Accordia for deceptive marketing practices
- Claims against the agent or broker who sold you the policy for breach of fiduciary duty or fraud
- Claims against the brokerage firm that employed the agent for failure to supervise
- Participation in class action litigation if similar claims are consolidated
The approach for your situation will depend on factors such as when you purchased the policy, how it was marketed to you, your current financial situation, and the specific representations that were made during the sales process.
Time limitations may apply to your claims. Therefore, it’s important to consult with an experienced attorney as soon as possible to preserve your legal rights.
Financial and Insurance Firms We Target
Several large insurance firms have been implicated in class action IUL lawsuits. Below is a list of some of the brokerages and firms we might investigate:
Insurance Companies
- Allianz
- Columbus Life
- Family First Life
- Minnesota Life/Securian Financial
- National Life Group
- Pacific Life
- Protective
- Prudential
- Transamerica
Financial Firms
- Ameritas
- Equis Financial
- Equitable AXA
- Five Rings Financial
- Global Atlantic (Accordia)
- Integrity Marketing Group
- John Hancock
- LifePro Financial
- Mutual of Omaha
- North American
- Penn Mutual
- PHP Agency
- Symetra
- Symmetry Financial Group
- World Financial Group
Frequently Asked Questions About Global Atlantic IUL Lawsuits
Why did Global Atlantic stop selling IUL products?
Global Atlantic announced in June 2023 that it would stop selling new IUL policies effective July 1, 2023, citing declining business performance. The company’s IUL business had fallen from 16% of total business in 2013 to less than 3% by 2023. Industry reports suggest the decision was driven by performance problems, regulatory pressures, and challenges in the low interest rate environment.
What is the connection between Global Atlantic and Accordia Life?
Accordia Life Insurance Company has been used as a subsidiary and tradename for certain Global Atlantic IUL products. This corporate relationship means that some policies may be issued by Accordia but backed by Global Atlantic’s financial strength. Understanding this connection is important for determining which entities can be held liable for deceptive sales practices.
How do I know if my Global Atlantic IUL policy was sold fraudulently?
Common signs of fraudulent IUL sales include being told the policy was a “tax-free retirement account,” promises of guaranteed returns, comparisons to 401(k) performance without explaining the differences, or failure to explain the risks of policy failure. If your policy is performing significantly worse than illustrated, this may also indicate problems with the original sales process.
What damages can I recover in a Global Atlantic IUL lawsuit?
Potential damages may include the premiums you paid into the policy, lost investment opportunities, tax consequences from policy failure, and in some cases punitive damages. The specific damages available will depend on the facts of your case and the legal theories pursued.
How long do I have to file a lawsuit against Global Atlantic?
Statutes of limitations vary by state and the type of legal claim. Generally, fraud claims must be filed within a few years of discovering the fraud, while contract claims may have longer limitation periods. It’s important to consult with an attorney promptly to preserve your rights.
Do I need to pay attorney fees upfront for an IUL lawsuit?
No. RP Legal LLC represents IUL fraud victims on a contingency fee basis, meaning you pay no attorney fees unless we recover compensation for you. We also provide free initial consultations to evaluate your case.
What documents do I need to pursue a Global Atlantic IUL claim?
Key documents include your policy contract, sales illustrations, marketing materials, annual statements, premium payment records, and any correspondence with the company or agent. Our attorneys can help you identify and obtain additional documents that may be relevant to your case.
Can I still file a lawsuit if my Global Atlantic IUL policy is still active?
Yes. You may have valid claims even if your policy has not yet failed, particularly if it was sold using deceptive practices or is performing significantly worse than illustrated. Early action may help preserve your legal rights and potentially minimize future losses.
Contact Our IUL Fraud Attorneys Today
If you own a Global Atlantic or Accordia IUL policy, don’t wait to explore your legal options. Contact RP Legal LLC today for a free consultation with our experienced investment fraud attorneys. You can also fill out our online contact form, and one of our attorneys will get back to you promptly.
Our team of IUL lawsuit attorneys has the experience and resources necessary to help you recover your losses. We understand the complex nature of IUL policies and the various ways insurance companies and agents may have misled you. Let us put our experience to work for you.
Remember, there are time limits for filing claims, so don’t delay in seeking legal assistance. Contact us or give us a call: (803) 805-7546 to schedule your free consultation.