Transamerica Life Insurance faces Lawsuit after Annuity Fraud Allegations

Shub Johns & Holbrook LLP has filed a proposed class action lawsuit against Transamerica Life Insurance Company, alleging that the insurer unlawfully charges variable annuity contract holders premium taxes when they surrender their contracts before the annuity date.

The lead plaintiff, Katz, a Pennsylvania resident, owns a Choice Annuity contract managed by Transamerica Life. According to the complaint, Katz — along with potentially tens of thousands of other consumers nationwide — had hundreds of dollars in premium taxes deducted from their variable annuity accounts after surrendering their contracts prior to the annuity date. The lawsuit claims that Transamerica’s annuity contracts state that consumers may surrender their contracts before the annuity date, yet the company still imposes these charges.

The lawsuit further alleges that Transamerica Life breaches its contracts and engages in deceptive business practices by profiting from these premium tax charges, which the plaintiffs argue are not permitted under the terms of the contracts.

The court has given Transamerica Life until September 2, 2025, to respond to the initial class action complaint.

If you are a Transamerica Life customer who was charged premium taxes or had deductions taken from your annuity account after surrendering your contract before the annuity date, contact Shub Johns & Holbrook LLP today to join the investigation.

 To read more about the case, click here.