Symetra IUL Fraud Lawsuit: $32.5 Million Settlement and Legal Options

If you purchased a Symetra indexed universal life (IUL) insurance policy and experienced significant underperformance or unexpected charges, you may have legal options for compensation. Symetra Life Insurance Company recently reached a $32.5 million settlement to resolve claims involving improper cost of insurance deductions affecting approximately 43,000 policyholders across 11 states.

At RP Legal LLC, our securities fraud lawyers have recovered over $100 million for clients harmed by deceptive IUL sales practices. We understand the complex nature of these financial products and the devastating impact they can have on retirement planning when sold improperly. Our team, led by attorney Robert Rikard with 28 years of experience in investment fraud litigation, provides comprehensive legal representation for Symetra IUL fraud victims nationwide.

Symetra’s $32.5 Million Class Action Settlement

Davis v. Symetra Life Insurance Company Settlement Details

In May 2025, Symetra Life Insurance Company agreed to pay $32.5 million to settle a class action lawsuit alleging improper cost of insurance deductions from universal life insurance policies. The case, Davis v. Symetra Life Insurance Company, was filed in the Western District of Washington and received final court approval on May 19, 2025.

The settlement addresses claims that Symetra made excessive cost of insurance charges and policy deductions that violated the terms of approximately 43,000 MasterPlan series policies. These improper charges allegedly caused policies to underperform significantly compared to initial illustrations. Additionally, in many cases, these charges led to policy lapses that left policyholders without coverage despite paying substantial premiums.

Under the settlement agreement, eligible class members receive automatic payments without needing to file individual claims. Furthermore, the settlement requires Symetra to implement changes to its cost of insurance practices to prevent similar issues in the future. This represents one of the largest IUL-related settlements in recent years and demonstrates the serious nature of the allegations against Symetra.

Affected Policy Types and States

The Symetra class action settlement covers several policy types issued by American States Life Insurance Company and administered by Symetra Life Insurance Company. Affected policies include:

• MasterPlan universal life insurance policies
• Executive MasterPlan policies
• MasterPlan Plus series policies
• Joint MasterPlan Plus policies
• Juvenile MasterPlan Plus policies

The settlement applies to policyholders in 11 states: Arizona, California, Florida, Illinois, Indiana, Kentucky, Minnesota, Missouri, South Carolina, Texas, and Washington. If you owned one of these policy types in any of these states and experienced unexpected charges or policy underperformance, you may be eligible for compensation under the settlement.

However, this settlement only addresses specific cost of insurance overcharge claims. Policyholders who experienced other forms of fraud or misrepresentation in connection with their Symetra IUL policies may still have separate legal claims that are not covered by this settlement.

Common Symetra IUL Fraud Practices

Misleading Policy Illustrations

One of the most significant issues in Symetra IUL fraud cases involves misleading policy illustrations that present unrealistic return projections. These illustrations often use non-guaranteed multipliers and optimistic assumptions that make the policies appear more attractive than they actually are.

Common problems with Symetra IUL illustrations include:

• Unrealistic return assumptions: Illustrations showing consistent 6-7% annual returns (the current regulatory maximum under AG 49-B) without adequately explaining that these are hypothetical projections, not guarantees
• Hidden fee structures: Complex cost of insurance charges, administrative fees, and surrender charges that are not clearly disclosed or explained
• Overstated tax benefits: Misleading claims about “tax-free retirement income” without proper disclosure of risks and limitations
• Failure to show downside scenarios: Illustrations that don’t adequately demonstrate what happens if market performance is poor or if the policyholder cannot continue premium payments

These misleading illustrations often lead consumers to believe they are purchasing a low-risk investment vehicle that will provide guaranteed retirement income. In reality, IUL policies are complex insurance products with significant risks and limitations, as highlighted by FINRA’s investor warnings about indexed products.

Unsuitable Sales Practices

Many Symetra IUL fraud cases involve unsuitable sales practices where agents recommend these complex products to consumers for whom they are inappropriate. This is particularly problematic when agents sell IUL policies to older investors who need stable, predictable retirement income rather than speculative insurance products.

Common unsuitable sales practices include:

• Targeting older investors: Selling IUL policies to individuals in their 50s, 60s, or 70s who cannot afford the long-term premium commitments required
• Misrepresenting as investment alternatives: Presenting IUL policies as superior alternatives to 401(k) plans, IRAs, or other established retirement vehicles
• Inadequate suitability analysis: Failing to properly assess the client’s financial situation, risk tolerance, and investment objectives
• Pressure tactics: Using high-pressure sales techniques and creating artificial urgency to prevent consumers from conducting proper due diligence

These practices violate both insurance regulations and fiduciary duties owed to clients. As a result, they create grounds for legal action against both the insurance agents and the companies that employ them. Our broker misconduct attorneys have extensive experience handling these types of cases.

Cost of Insurance Overcharges

The recent $32.5 million Symetra settlement specifically addressed allegations of excessive cost of insurance charges. These charges are supposed to cover the actual cost of providing life insurance coverage. However, the lawsuit alleged that Symetra charged more than what actuarial data and policy terms justified.

Problems with cost of insurance charges include:

• Excessive deductions: Charging more than what policy contracts specify or what actuarial data justifies
• Failure to reduce charges: Not lowering charges when mortality expectations improve or when the insurance risk decreases
• Causing policy lapses: Setting charges so high that policies become unsustainable, forcing policyholders to surrender or let policies lapse
• Lack of transparency: Not providing clear explanations of how charges are calculated or when they may increase

These overcharges can devastate policy performance and leave policyholders with far less value than they were promised when they purchased their policies. Understanding IUL fees is crucial for identifying potential fraud.

The Yokel v. Symetra Case: A Detailed Example

Case Background and Investment Details

The Yokel v. Symetra case, filed in Greenville County Court of Common Pleas, South Carolina (Case #: 2024CP2303386), provides a detailed example of how Symetra IUL fraud can impact individual investors. In this case, the plaintiffs Beth S. Yokel and David M. Yokel invested $800,000 in a Symetra Accumulator IUL policy purchased in June 2019.

Agents sold the policy with promises of generating substantial annual tax-free income for retirement. These projections were based on optimistic assumptions about market performance and failed to adequately account for the policy’s fees, charges, and limitations. The case illustrates how even substantial investments in IUL policies can fail to meet expectations when sold with misleading projections.

The significant investment amount in this case demonstrates that Symetra IUL fraud affects not just small investors but also high-net-worth individuals who rely on these policies for substantial portions of their retirement planning. When these policies underperform, the financial impact can be devastating, particularly for those approaching retirement age.

Legal Claims and Defendants

The Yokel case names several defendants, including:

• Matthew Dixon: The insurance agent who sold the policy
• Black Harbor Wealth Management LLC: The agency that employed the agent
• Symetra Life Insurance Company: The insurance carrier

The legal claims in the case include allegations of misleading financial advice and violations related to unfair trade practices under South Carolina law. The case demonstrates how IUL fraud often involves multiple parties in the sales chain, from individual agents to large insurance companies.

The involvement of multiple defendants is common in IUL fraud cases because the complex sales process typically involves agents, agencies, and insurance companies. Each of these parties may bear responsibility for different aspects of the fraudulent conduct. Our FINRA arbitration lawyers are experienced in handling multi-defendant cases.

Key Issues in the Case

Several key issues highlighted in the Yokel case are common in Symetra IUL fraud litigation:

• Non-guaranteed multipliers: The use of optimistic, non-guaranteed internal multipliers that inflated performance projections
• Inadequate risk disclosure: Failure to properly explain the risks and limitations of the IUL policy
• Complex fee structures: Complicated cost structures that were not adequately explained to the policyholder
• Regulatory circumvention: Allegations that the policy design circumvented Actuarial Guidelines intended to protect consumers

These issues demonstrate the sophisticated nature of IUL fraud and the need for experienced legal representation to hold insurance companies and agents accountable for their misconduct.

How Symetra IUL Policies Work and Where Problems Arise

Understanding Indexed Universal Life Insurance

Indexed universal life insurance policies are complex financial products that combine life insurance coverage with a cash value component tied to market index performance. Understanding how these policies work is important for identifying when fraud has occurred.

Key components of IUL policies include:

• Death benefit: The life insurance coverage provided to beneficiaries
• Cash value: The investment component that can accumulate value over time
• Index crediting: The method by which cash value growth is tied to market index performance
• Cost of insurance: Charges for the actual life insurance coverage
• Administrative fees: Various fees for policy management and maintenance
• Policy loans: The ability to borrow against the cash value

The complexity of these policies makes them difficult for consumers to understand and creates opportunities for unscrupulous agents to misrepresent their features and benefits. The New York Department of Financial Services has issued consumer alerts about these risks.

Red Flags in Symetra IUL Sales

Several warning signs may indicate fraudulent or unsuitable IUL sales practices:

• “Tax-free retirement income” claims: Overstating the tax advantages without explaining risks and limitations
• Unrealistic performance projections: Showing consistent high returns (above current AG 49-B regulatory caps of 6-7%) without adequate risk disclosure
• Pressure to invest large amounts: Encouraging consumers to invest substantial portions of their assets in a single IUL policy
• “Be your own bank” strategies: Promoting policy loans as a wealth-building tool without explaining the risks
• Comparisons claiming superiority: Asserting that IUL policies are better than 401(k) plans or other established retirement vehicles

These red flags should prompt consumers to seek independent financial advice and carefully review all policy documents before making a purchase decision. Our guide on recognizing investment fraud provides additional warning signs.

Common Misrepresentations

Symetra IUL fraud cases often involve specific misrepresentations about policy features and benefits:

• Downplaying fees and charges: Minimizing or hiding the impact of various policy fees on long-term performance
• Overstating flexibility: Exaggerating the ability to adjust premiums or benefits without consequences
• Minimizing lapse risk: Failing to explain how market downturns or missed premium payments can cause policy failure
• Ignoring market volatility: Not adequately explaining how market performance affects cash value accumulation

These misrepresentations can lead consumers to make investment decisions based on incomplete or inaccurate information, resulting in significant financial losses. Understanding the difference between IUL vs whole life insurance can help consumers make more informed decisions.

Legal Remedies for Symetra IUL Fraud Victims

Types of Claims Available

Victims of Symetra IUL fraud may have several types of legal claims available:

• Breach of fiduciary duty: When agents or advisors fail to act in the client’s interests
• Fraud and misrepresentation: When false or misleading information is provided during the sales process
• Unsuitable investment recommendations: When agents recommend IUL policies to inappropriate investors
• Failure to supervise: When brokerage firms fail to properly oversee their representatives
• State insurance regulation violations: When sales practices violate state insurance laws and regulations

The specific claims available depend on the circumstances of each case and the applicable state laws. An experienced attorney can evaluate your situation and determine which claims may apply. Our investment fraud attorneys have handled hundreds of similar cases.

Potential Damages and Recovery Options

Successful Symetra IUL fraud claims may result in various types of compensation:

• Premium refunds: Recovery of premiums paid into the policy
• Surrender charge reimbursement: Compensation for penalties imposed when canceling the policy
• Lost opportunity costs: Damages for investment returns that could have been earned in suitable investments
• Punitive damages: Additional compensation in cases involving intentional fraud or egregious misconduct
• Attorney fees and costs: Reimbursement of legal expenses in appropriate cases

The amount of potential recovery depends on factors such as the amount invested, the length of time the policy was held, and the extent of the misconduct involved. Our case results demonstrate our track record of successful recoveries.

Class Action vs. Individual Lawsuits

Symetra IUL fraud victims may have options to pursue compensation through class action lawsuits or individual litigation:

Class action benefits:

• Lower individual costs
• Shared legal resources
• Strength in numbers
• Established legal precedents

Individual lawsuit advantages:

• Personalized attention to specific circumstances
• Potentially higher individual recovery
• Greater control over litigation strategy
• Ability to pursue unique claims not covered by class actions

The choice between class action participation and individual litigation depends on the specific circumstances of each case. You should make this decision in consultation with experienced legal counsel. Our attorneys can help you understand what to do if you are a victim of fraud.

Why Choose RP Legal LLC for Your Symetra IUL Case

Proven Track Record in IUL Litigation

RP Legal LLC has established a strong reputation in IUL fraud litigation. Our lead attorney, Robert Rikard, has recovered over $100 million for clients harmed by deceptive insurance and investment practices. With 28 years of experience in investment fraud cases, Mr. Rikard brings substantial knowledge to Symetra IUL fraud litigation.

Our recent achievements include:

• Successful IUL verdict against a major insurance carrier in 2024
• Representation of hundreds of IUL fraud victims nationwide
• Recognition as a knowledgeable authority in IUL litigation by national media outlets
• Service on multidistrict litigation (MDL) steering committees for complex insurance cases

This track record demonstrates our ability to hold major insurance companies accountable for fraudulent practices and recover meaningful compensation for our clients. Our case results speak to our commitment to achieving justice for IUL fraud victims.

Comprehensive Legal Knowledge

Our legal team possesses the knowledge necessary to handle complex Symetra IUL fraud cases:

• AV® Preeminent Martindale-Hubbell rating: The highest available rating for legal knowledge and ethical standards (view Robert Rikard’s profile)
• Federal court experience: Admitted to practice in federal courts and appellate courts
• Insurance industry knowledge: Deep understanding of insurance regulations and industry practices

This comprehensive knowledge enables us to effectively challenge insurance companies and their legal teams in complex litigation. Our attorneys bring decades of combined experience in securities fraud and investment misconduct cases, including expertise in premium financed IUL cases.

No-Risk Representation

We understand that IUL fraud victims have already suffered significant financial losses and may be hesitant to incur additional legal expenses. That’s why we handle Symetra IUL fraud cases on a contingency fee basis:

• No upfront costs: You pay no attorney fees unless we recover compensation for you
• Free case evaluation: We provide comprehensive case assessments at no charge
• National practice: We represent clients across all 50 states
• Experienced support team: Our staff includes paralegals and investigators with IUL fraud experience
  

This approach helps all victims of Symetra IUL fraud access quality legal representation regardless of their current financial situation. Learn more about suing a financial advisor or broker for misconduct.

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 Symetra IUL Lawsuits

Contact RP Legal LLC today at (803) 805-7546 for a free consultation about your Symetra IUL case.

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