The class action lawsuit alleges that Transamerica Life Insurance Company (“TLIC” or “Defendant”) breached its contracts with certain Policyowners and improperly raised cost of insurance (“COI”) rates or monthly deduction rates (“MDR”) on those policies. From 2022 to 2023, policyholders were issued letters announcing that their insurance policies would be subject to an increase in the COI rates or MDRs on their policies (the “2022/23 MDR Increases”). Plaintiffs assert that the 2022/23 MDR Increases violated the terms of the Policyowners’ contracts and that Plaintiffs and members of the Settlement Class have been damaged as a result.
The lawsuit is called Estate of Handorf, et al. v. Transamerica Life Insurance Company, Case No. 2:23-cv-00032-CJW-MAR. It is pending in the U.S. District Court for the Northern District of Iowa (the “Action”). TLIC denies that it did anything wrong, and the Court has not decided who is right. The parties have agreed to a proposed settlement of the Action (the “Settlement”) to avoid the costs, risks, disruptions, delays, and uncertainties of continuing the Action. If the Court approves the Settlement, Settlement Class Members will be eligible to receive payment from a cash Settlement Fund of $57,000,000.00. The Settlement Fund will be reduced proportionally if there are any opt-outs from the Settlement Class. No portion of the Final Settlement Fund will be returned to TLIC. TLIC has also agreed not to:
Impose any new additional COI rate or MDR schedule increases on policies covered by the Settlement for a period of five years, unless ordered to do so by a state regulatory body, and
Cancel, void, rescind, or deny a death claim submitted under the Settlement Class members’ policies or contest the validity of a policy based on an alleged lack of insurable interest or misrepresentation made in connection with the original application process under any applicable law or equitable principles.
If you received notice, then TLIC's records indicate that you are a Settlement Class Member and entitled to benefits under the Settlement.
Your rights are affected whether you act or don’t act. Please read the Notice carefully and completely.
Summary of Your Legal Rights and Options in this Settlement | Deadline | ||
Do Nothing | Automatically receive a payment in the mail if you are entitled to one and be bound by the Settlement. | No Deadline | |
Opt Out of the Settlement | You can choose to opt out of the Settlement and receive no benefits or payment from the Settlement. This option allows you to sue TLIC, at your own expense, for the claims in this case. | May 30, 2026 | |
Object to the Settlement | Tell the Court what you do not like about the Settlement. The purpose of an objection to the Settlement is to persuade the Court not to approve the proposed Settlement. | June 1, 2026 | |
These rights and options—and the deadlines to exercise them—are explained in the Notice and FAQs.
The Court in charge of this case still has to decide whether to approve the Settlement.
Upcoming Important Dates
Opt Out Deadline
5/30/2026
Objection Deadline
6/1/2026
Final Approval Hearing
7/13/2026 at 1:30 P.M.