Jackson National Avoids Annuity Fees Country-Wide Class Action

A lawsuit accusing Jackson National Life Insurance Co. of overcharging customers shouldn’t have been certified as a nationwide class action, the Fifth Circuit said.

Jackson’s variable annuities are structured as long-term investments, so customers who withdraw money early incur charges to compensate Jackson for upfront costs. These surrender charges are calculated according to a schedule and decrease with the annuity’s age.

Several Texas residents sued Jackson for breach of contract, breach of fiduciary duty, and negligent misrepresentation. They alleged the company had miscalculated their surrender charges, and improperly reduced their living and death benefits.

Jackson’s inflated surrender charges had harmed ...