Cates Mahoney, LLC Assists in Achieving Settlement for Independent Insurance AgentsPublished: Mar 15, 2021 in Class Action
In David Cohen, CLU v. Accordia Life and Annuity Company and Alliance-One Services, Inc., a group of independent life insurance agents, who sold several polices for Accordia Life and Annuity Company, Global Atlantic Financial Group, Ltd., and Alliance-One Services, Inc., accused the companies of failing to pay the agents their contractually agreed upon renewal commissions or paid them commissions that were lower than what was expected.
Failure to properly manage a conversion period led to the change in commission payments. During this period, they did not properly accept money from clients to renew the policies, thus causing the policies to either lapse or yield less compensation for the salesmen. Under a class action suit, the complaint asserts causes of actions for breach of contract, breach of third-party beneficiary contract, breach of the duty of good faith and fair dealing, negligence, tortious interference with prospective economic advantage, tortious interference with contractual relations, and unjust enrichment.
David Cates of Cates Mahoney, LLC was co-lead on the class action lawsuit and helped secure a settlement worth more than $4 million. The case involved about 79,000 settlement class members who sold and/or serviced approximately 530,000 life insurance policies.
If you have a legal concern, contact the legal team at Cates Mahoney, LLC today. Call 618-277-3644 or fill out an online form for a free consultation. Located in Swansea, Illinois, the firm serves clients throughout St. Louis, Belleville, East St. Louis, Edwardsville, Granite City, Waterloo, Chester, Carbondale, St. Clair County, Madison County, Monroe County, Randolph County, and other regions throughout Southern Illinois.