If you purchased an indexed universal life (IUL) insurance policy from North American Company for Life and Health Insurance and experienced significant financial losses, you may have grounds for legal action. At RP Legal LLC, our attorneys have recovered over $100 million for clients harmed by deceptive IUL sales practices. Additionally, we have achieved recent victories against major insurance carriers.

North American IUL fraud lawsuits typically involve claims of misrepresentation, unsuitable sales practices, and failure to disclose critical policy risks. Our legal team understands the complex nature of these IUL cases. Furthermore, we work to hold insurance companies and agents accountable for their deceptive practices.

Call (803) 805-7546 for a free consultation about your North American IUL fraud case.

Understanding North American IUL Fraud Cases

What is North American Company for Life and Health Insurance?

North American Company for Life and Health Insurance operates as a subsidiary of Sammons Financial Group. The company maintains its headquarters in West Des Moines, Iowa. North American has sold life insurance and annuity products since 1886. Additionally, the company markets indexed universal life policies as retirement planning solutions.

The company’s IUL products reach consumers through independent agents and financial advisors. These professionals may receive substantial commissions for sales. As a result, this creates potential conflicts of interest that can lead to unsuitable recommendations. The National Association of Insurance Commissioners (NAIC) has established model regulations to address suitability requirements for insurance products.

Common North American IUL Fraud Schemes

North American IUL fraud cases typically involve several recurring deceptive practices:

Misleading Retirement Income Projections: Agents often present IUL policies as superior alternatives to traditional retirement accounts. However, they use unrealistic growth assumptions that ignore policy fees, caps on returns, and insurance costs. These misleading illustrations violate industry standards.

“Tax-Free Retirement” Misrepresentations: Salespeople frequently promote IUL policies as providing “tax-free retirement income.” Nevertheless, they fail to adequately explain the risks of policy loans. These risks include the potential for policy collapse if loans exceed cash value. The IRS has specific rules governing the taxation of life insurance proceeds and policy loans.

Unsuitable Sales to Seniors: Many North American IUL policies are inappropriately sold to older adults. These individuals cannot afford the premiums. Furthermore, they would benefit more from traditional retirement planning vehicles. This constitutes financial elder abuse.

Premium Financing Schemes: Some agents promote complex premium financing arrangements. In these schemes, clients borrow money to pay IUL premiums. This creates additional financial risks that agents often inadequately disclose.

How North American IUL Policies Were Misrepresented

Insurance agents and financial advisors often misrepresent North American IUL policies in several ways:

Overstated Performance Projections: Policy illustrations may show unrealistic returns based on historical market performance. However, these projections fail to account for insurance costs, administrative fees, and caps on credited interest. The NAIC Model Regulation #582 governs life insurance illustrations to prevent such misrepresentations.

Downplaying Insurance Costs: Agents may minimize or fail to explain how increasing cost of insurance charges can erode policy value over time. This problem becomes particularly severe as policyholders age.

Inadequate Risk Disclosure: Many clients do not receive proper information about the risks of policy loans, surrender charges, or the potential for policies to lapse without adequate premium payments. This violates suitability requirements established by state insurance regulators.

Comparison Manipulation: Agents may present misleading comparisons between IUL policies and other investment vehicles. These comparisons fail to account for the tax advantages and employer matching available in qualified retirement plans.

Legal Issues with North American IUL Policies

Deceptive Sales Practices and Misleading Illustrations

North American IUL fraud lawsuits often center on deceptive sales practices that violate state insurance regulations and consumer protection laws. These practices include:

Unrealistic Policy Illustrations: Insurance agents may use policy illustrations that assume consistently high returns. However, they fail to adequately explain market volatility, caps on credited interest, or the impact of fees and charges. The NAIC’s model regulations require accurate and fair illustrations.

Failure to Conduct Suitability Analysis: Agents have a duty to confirm that IUL policies are suitable for their clients’ financial situations, risk tolerance, and investment objectives. Many North American IUL cases involve sales to individuals for whom these complex products were inappropriate. This constitutes broker negligence.

Misrepresentation of Policy Features: Agents may mischaracterize policy loans as “withdrawals.” Additionally, they may fail to explain how borrowing against policy value can trigger taxable events or cause policy collapse.

Inadequate Training and Supervision: Insurance companies and broker-dealers may fail to properly train and supervise agents selling IUL products. This leads to widespread misrepresentations and unsuitable sales. The failure to supervise agents is a common claim in these cases.

Failure to Disclose Risks and Costs

North American Company and its agents have a legal obligation to provide clear, accurate information about IUL policy risks and costs. Common disclosure failures include:

Hidden Fees and Charges: IUL policies contain numerous fees that can significantly impact performance. These include cost of insurance charges, administrative fees, premium loads, and surrender charges. Our detailed guide on IUL fees explains these complex cost structures.

Market Risk Limitations: While IUL policies offer downside protection through minimum guaranteed returns, they also limit upside potential through caps and participation rates. Agents often fail to adequately explain these limitations.

Policy Lapse Risk: Insufficient premium payments or excessive policy loans can cause IUL policies to lapse. This results in loss of coverage and potential tax consequences that agents often fail to explain.

Liquidity Constraints: IUL policies typically have limited liquidity. Surrender charges can persist for many years after purchase, making these products unsuitable for investors who may need access to their funds.

Unsuitable Recommendations for Retirement Planning

Many North American IUL fraud cases involve unsuitable recommendations. In these cases, agents promoted IUL policies as primary retirement planning vehicles for clients who would have been better served by other options:

Inadequate Income Replacement: IUL policies may not provide sufficient retirement income compared to maximizing contributions to employer-sponsored retirement plans with matching contributions.

Age-Inappropriate Sales: IUL policies are often unsuitable for older adults. These individuals have limited time for cash value accumulation. Furthermore, they cannot afford the ongoing premium commitments. This often constitutes financial elder abuse.

Risk Tolerance Mismatch: Complex IUL products may be inappropriate for conservative investors who do not understand or cannot tolerate the inherent risks.

Opportunity Cost: Money invested in IUL premiums might generate better returns in diversified investment portfolios with lower fees and greater liquidity.

Your Legal Rights Against North American Company

Grounds for Filing a North American IUL Lawsuit

If you purchased a North American IUL policy and suffered financial losses, you may have several legal claims:

Fraud and Misrepresentation: If agents made false statements about policy performance, features, or suitability, you may have claims for fraud or negligent misrepresentation. These claims are governed by state consumer protection laws.

Breach of Good Faith and Fair Dealing: Insurance agents owe duties of good faith and fair dealing to their clients. They may be liable for breaching these duties through unsuitable recommendations or inadequate disclosure.

Violation of Securities Laws: IUL policies may be considered securities in some circumstances where they are misrepresented as investment products. This subjects sales to federal and state securities regulations. While the SEC generally does not regulate IUL policies as securities, misrepresentations during sales may trigger securities law violations.

Consumer Protection Violations: State consumer protection laws may provide remedies for deceptive trade practices in the sale of insurance products.

Breach of Contract: Insurance companies may breach their contractual obligations through improper policy administration or failure to honor policy terms.

Types of Damages You May Recover

Successful North American IUL fraud lawsuits may result in various types of compensation:

Economic Damages: Recovery of premiums paid, lost investment returns, and other out-of-pocket losses resulting from the fraudulent sale.

Consequential Damages: Additional financial losses caused by the unsuitable IUL purchase. These may include missed opportunities for better investments or retirement planning.

Punitive Damages: In cases involving particularly egregious conduct, courts may award punitive damages to punish wrongdoers and deter similar behavior.

Attorney Fees and Costs: Many IUL fraud cases are handled on a contingency fee basis. Successful plaintiffs may recover attorney fees and litigation costs.

Rescission: In some cases, courts may order rescission of the insurance contract. This effectively unwinds the transaction and restores parties to their original positions.

Statute of Limitations for IUL Claims

The time limit for filing North American IUL fraud lawsuits varies by state and type of claim:

Fraud Claims: Most states provide 2-6 years from discovery of the fraud to file fraud-based claims.

Contract Claims: Breach of contract claims typically must be filed within 3-6 years of the breach.

Securities Violations: Federal securities claims generally must be filed within 2-5 years depending on the specific violation.

Consumer Protection Claims: State consumer protection statutes may have varying limitation periods.

It’s crucial to consult with an experienced IUL fraud attorney promptly. This helps confirm your claims are filed within applicable deadlines.

Why Choose RP Legal LLC for Your North American IUL Case

Proven Track Record in IUL Litigation

RP Legal LLC has established itself as a recognized firm in IUL fraud litigation with a proven track record of success:

Over $100 Million Recovered: Our founding partner, Robert G. Rikard, has recovered more than $100 million for clients harmed by investment fraud and deceptive insurance practices. Mr. Rikard holds the prestigious AV® Preeminent rating from Martindale-Hubbell, indicating the highest level of professional excellence.

Recent Victory Against Pacific Life: In May 2024, we secured a significant jury verdict against Pacific Life Insurance Company and an insurance agent in an IUL fraud case. This demonstrates our ability to take complex cases to trial and win.

National Recognition: Our firm has gained national recognition for representing investors harmed by IUL policies and other complex financial products. We have been featured in major media outlets including The Wall Street Journal and USA Today.

MDL and Class Action Experience: Our attorneys have served on multidistrict litigation steering committees and as lead counsel in class action cases. This provides the experience necessary to handle large-scale insurance fraud cases.

Experience with North American Company Cases

Our legal team has extensive experience with cases involving North American Company and similar insurance carriers:

Understanding of Company Practices: We have investigated North American Company’s sales practices, policy features, and agent training programs to identify patterns of misconduct.

Knowledge of Industry Standards: Our attorneys understand insurance industry regulations, suitability requirements, and disclosure obligations that apply to IUL sales. We stay current with NAIC model regulations and state insurance laws.

Expert Witness Network: We work with qualified professionals in insurance, finance, and actuarial science to support our clients’ claims and demonstrate damages.

Regulatory Knowledge: Our team understands the complex regulatory framework governing insurance sales. We can identify violations of state and federal laws.

No Fee Unless We Win Your Case

RP Legal LLC handles North American IUL fraud cases on a contingency fee basis, meaning:

No Upfront Costs: You pay no attorney fees unless we successfully recover compensation for your losses.

Risk-Free Consultation: We provide free case evaluations to determine whether you have viable claims against North American Company or its agents.

Aligned Interests: Our contingency fee structure confirms that we are motivated to achieve the maximum recovery possible for your case.

Experienced Representation: You receive the same high-quality legal representation regardless of your ability to pay hourly fees.

How to File a North American IUL Fraud Lawsuit

Free Case Evaluation Process

Getting started with your North American IUL fraud case is straightforward:

Initial Consultation: Contact our office at (803) 805-7546 to schedule a free consultation with an experienced IUL fraud attorney.

Case Review: We will review your policy documents, sales materials, and financial records to assess the strength of your potential claims.

Investigation: Our team will investigate the circumstances of your policy purchase. This includes the agent’s conduct, company practices, and applicable regulations.

Legal Strategy: If we determine you have viable claims, we will develop a comprehensive legal strategy tailored to your specific situation.

What Documents You’ll Need

To evaluate your North American IUL fraud case, we will need several key documents:

Insurance Policy: The complete IUL policy contract, including all riders and amendments.

Policy Illustrations: Any projections or illustrations provided during the sales process showing potential policy performance.

Sales Materials: Brochures, presentations, or other marketing materials used to promote the policy.

Financial Records: Documentation of premium payments, policy loans, and account statements.

Communication Records: Emails, letters, or notes from meetings with insurance agents or financial advisors.

Personal Financial Information: Information about your financial situation, investment objectives, and risk tolerance at the time of purchase.

Timeline for IUL Fraud Cases

North American IUL fraud lawsuits typically follow this general timeline:

Case Investigation (1-3 months): Initial document review, professional consultation, and legal research to build your case.

Filing and Discovery (6-18 months): Filing the lawsuit, exchanging information with defendants, and conducting depositions of key witnesses.

Professional Analysis (3-6 months): Retaining and working with professional witnesses to analyze damages and support your claims.

Settlement Negotiations: Many cases resolve through settlement negotiations, which can occur at any stage of litigation.

Trial Preparation and Trial (6-12 months): If settlement is not achieved, preparing for and conducting trial proceedings.

The total timeline can vary significantly based on case complexity, court schedules, and the defendants’ willingness to negotiate reasonable settlements.

Frequently Asked Questions About North American IUL Lawsuits

What is North American Company for Life and Health Insurance?

North American Company for Life and Health Insurance operates as a subsidiary of Sammons Financial Group. The company has sold life insurance and annuity products since 1886. North American maintains its headquarters in West Des Moines, Iowa. Additionally, the company markets indexed universal life policies through independent agents and financial advisors nationwide.

How do I know if my North American IUL policy was sold fraudulently?

Signs of fraudulent North American IUL sales include: unrealistic performance projections that ignore fees and market limitations; misrepresentation of the policy as a “tax-free retirement” solution without explaining loan risks; failure to conduct proper suitability analysis based on your age, income, and investment objectives; inadequate disclosure of fees, surrender charges, and policy risks; and pressure to purchase the policy quickly without adequate time for review. If you experienced any of these issues, you may have grounds for legal action. These practices often constitute broker misconduct.

What damages can I recover in a North American IUL lawsuit?

Successful North American IUL fraud lawsuits may result in recovery of premiums paid, lost investment returns, and other economic losses. You may also recover consequential damages for missed investment opportunities. In cases of egregious conduct, courts may award punitive damages. Many cases also result in recovery of attorney fees and litigation costs. In some situations, courts may order rescission of the insurance contract, effectively unwinding the transaction.

How long do I have to file a lawsuit against North American Company?

The statute of limitations for North American IUL fraud claims varies by state and type of claim. Fraud claims typically must be filed within 2-6 years of discovering the fraud. Contract claims generally have 3-6 year limitation periods. Securities violations may have different deadlines under federal law. It’s important to consult with an attorney promptly to confirm your claims are filed within applicable deadlines.

Do I need to pay attorney fees upfront for an IUL fraud case?

No. RP Legal LLC handles North American IUL fraud cases on a contingency fee basis. This means you pay no attorney fees unless we successfully recover compensation for your losses. We provide free case evaluations and advance all litigation costs. Therefore, you can pursue your claims without financial risk.

What evidence do I need for my North American IUL fraud claim?

Key evidence for North American IUL fraud claims includes your complete insurance policy, policy illustrations and sales materials provided during the purchase process, records of premium payments and policy performance, communications with insurance agents or advisors, and documentation of your financial situation and investment objectives at the time of purchase. Our attorneys can help you gather and organize the necessary evidence to support your case.

How long does a North American IUL lawsuit typically take?

North American IUL fraud lawsuits typically take 12-36 months to resolve, depending on case complexity and whether settlement is achieved. The process includes case investigation (1-3 months), filing and discovery (6-18 months), professional analysis (3-6 months), and potential trial proceedings (6-12 months). Many cases resolve through settlement negotiations before trial, which can significantly reduce the timeline.

Can I join a class action lawsuit against North American Company?

Class action lawsuits against North American Company may be available in certain circumstances where multiple policyholders were harmed by similar deceptive practices. However, many IUL fraud cases are better suited for individual litigation due to the specific circumstances of each policy sale. Our attorneys can evaluate whether class action participation or individual litigation is the better approach for your specific situation.

If you purchased a North American IUL policy and suffered financial losses due to deceptive sales practices, contact us today. Call (803) 805-7546 for a free consultation with our experienced IUL fraud attorneys.

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Last Updated: 08-08-2025

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