What is this Settlement about?
A proposed settlement has been reached in a class action lawsuit called Wren, et al. v. Transamerica Life Insurance Company, Case No. 5:21-cv-00178-JGB-SP (C.D. Cal.). The class action lawsuit is referred to herein as “the Action,” and the proposed settlement reached in the Action is referred to herein as the “Settlement.”
Plaintiffs allege that TLIC improperly failed to credit certain Cash Value Increases (“CVIs”) associated with certain Direct Recognition Life (“DRL”) insurance policies and failed to act in good faith in connection with those CVIs. Plaintiffs seek monetary and other relief on behalf of themselves and a proposed Settlement Class of similarly situated policyowners.
TLIC denies all Plaintiffs’ allegations of wrongdoing, denies any liability, and contends that its conduct complied with the terms of the policies, applicable agreements, and governing laws. The Court has not decided who is right. Instead, Plaintiffs and TLIC (together, the “Parties”) have agreed to settle to avoid the risks, costs, and delays of further litigation.
Who is included?
You are a Settlement Class Member if you meet the following criteria:
- You own or owned a TLIC universal life insurance policy that was in effect on January 1, 2016;
- The policy was known by the product names “Direct Recognition Life 10” or “Direct Recognition Life 11”, or by the attribute codes “DRL-10” or “DRL-11”; and
- The policy was established and defined by the provisions of a Group Master Policy, Group Insurance Certificate, and Issue Illustration.
What does the Settlement provide?
The proposed Settlement provides for:
1. $110 Million Settlement Fund
TLIC has agreed to create a $110 million Settlement Fund. After deducting Settlement Administration Expenses, any Service Awards to the Class Representatives, any Class Counsel’s fees and expenses awarded by the Court, and any other Court-approved payments, the remaining amount (the “Net Settlement Fund”) will be distributed to Settlement Class Members based on a Court-approved Plan of Allocation. The amount each Settlement Class Member receives will depend on factors including the relative value of qualifying CVIs associated with the applicable policy or policies.
2. Bonus Crediting Project
TLIC has agreed that it will not rescind, revoke, or reverse certain credits it paid, and has committed to pay, pursuant to a “Bonus Crediting Project” it undertook in 2025 and 2026 as a result of this litigation under which it credited or will credit 30-Year Guaranteed CVIs to in-force DRL policies.
3. 40-Year Guaranteed CVI Benefit
TLIC has agreed that it will credit the 40-Year Guaranteed CVI for certain eligible DRL policies if they remain in force on their 40-year policy anniversaries.
4. Non-Contestability Benefit
TLIC has agreed that it will not seek to void, rescind, cancel, declare void, or otherwise deny certain death claims submitted by Settlement Class Members based on alleged lack of insurable interest or alleged misrepresentations made in connection with the original application process.
More details are in a document called the Settlement Agreement, which is available on the Important Documents page.
How can I get a Settlement Payment?
You will automatically receive a settlement check in the mail from JND Legal Administration as the Settlement Administrator if you are entitled to one. No claims need to be filed. You should consult with your own tax advisor regarding the tax consequences of the proposed Settlement, including but not limited to, any payments and payment periods, and any tax reporting obligations you may have.
Summary of Your Legal Rights and Options in this Settlement
These rights and options—and the deadlines to exercise them—are explained in a document called the Long Form Notice, which is available on the Important Documents page. The deadlines may be moved, cancelled, or otherwise modified, so please check this site regularly for updates and further details.
| Option & Due Date | Status | Event Description |
|---|---|---|
Do Nothing | Explanation:
| |
Ask to be Excluded ("Opt Out") Postmarked by October 2, 2026 | Status: Upcoming | Explanation:
|
Object Filed and served by October 2, 2026 | Status: Upcoming | Explanation:
|
Attend the Fairness Hearing Hearing scheduled for November 9, 2026 at 9:00 A.M. Pacific | Status: Upcoming | Explanation:
|
