What is the lawsuit about?
A proposed settlement has been reached in a class action lawsuit called Arbuckle Funding LLC et al. v. Talcott Resolution Life & Annuity Insurance Company et al., Case No. 7:23-cv-07972-CS (S.D.N.Y.) (the “Settlement”).
Plaintiffs allege that Defendants Talcott Resolution Life & Annuity Insurance Company and Talcott Resolution Life Insurance Company (collectively, “Defendants”), along with The Prudential Insurance Company of America (“Prudential”) as administrator of the life insurance policies at issue, improperly calculated and applied premium tax charges on certain life insurance policies, resulting in an alleged overcharge. Specifically, Plaintiffs claim that Defendants:
- Failed to update premium tax rates when policyholders changed their state of residence (“Address Change Issue”);
- Failed to properly adjust tax rates when state tax laws changed (“Rate Update Issue”);
- Applied a premium tax rate based on Connecticut’s rate for policyholders residing in states with lower statutory premium tax rates than Connecticut, which is the premium tax rate assessed to Defendants under those states’ retaliatory tax laws (“Retaliatory Tax Rate Issue”); and
- Charged New York policyholders more than the allegedly applicable statutory rate ("New York Issue," collectively with the Retaliatory Tax and Rate Update Issues, the "Tax Rate Issues").
Defendants and Prudential, as administrator of the relevant policies, deny all allegations (except for certain limited administrative errors that they acknowledged and corrected) and deny any wrongdoing or liability. The Court has not decided who is right. Instead, Plaintiffs, Defendants, and Prudential (together the “Parties”) have agreed to settle.
If the Court approves the Settlement, Settlement Class Members will be eligible to receive payment from a cash Settlement Fund of $11 million, as further detailed in FAQ 10. Defendants and Prudential, as the administrator of the relevant policies, have also agreed to make the following important forward-looking changes: (1) No longer applying the Connecticut premium tax rate assessed to Defendants for policyholders in states with lower statutory premium tax rates; and (2) Limiting New York premium tax charges to 0.7% (unless the law changes).
This Settlement is related to premium tax charges only. It does not resolve any claims against Defendants related to cost-of-insurance (“COI”) rates.
Who is included?
You are a Settlement Class Member if you meet the following criteria:
- You own or owned a universal life or variable universal life insurance policy issued by Defendants (or their predecessors, including Hartford Life and Annuity Insurance Company and Hartford Life Insurance Company).
- Your policy stated that the premium tax charge depends on your state (or municipality) of residence, and that tax rate will change if your address changes or if the state tax rate changes.
- Your policy was subject to at least one of the following, resulting in an alleged overcharge:
- Address Change Issue - Your address of record changed for your policy after your policy was issued to a state with a lower premium tax charge rate, and the insurer did not properly adjust the premium tax charge rate to match your new state; OR
- Tax Rate Issues – Your address of record for your policy was Arizona, Connecticut, the District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Nebraska, New Hampshire, New York, Ohio, Oregon, South Carolina, or Wyoming, and the insurer allegedly applied an allegedly incorrect premium tax rate (for example, not updating rates when laws changed or applying a higher rate than allegedly allowed by the policy, for example, assessing a retaliatory tax based on Connecticut’s rate for non-Connecticut policyholders).
- Premiums were paid for your policy during specific time periods (which vary by state and issue as listed in Exhibit B of the Settlement Agreement available on the Important Documents page - generally between 2015 and early 2025.
How can I get a payment?
You will automatically receive a settlement check in the mail from JND Legal Administration as the Claims Administrator if you are entitled to one. No claims need to be filed.
Your Legal Rights and Options
The following deadlines may be moved, canceled, or otherwise modified, so please check this site regularly for updates.
| Option & Due Date | Status | Event Description |
|---|---|---|
Do Nothing | Explanation:
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Ask to be Excluded ("Opt Out") Deadline: Postmarked by August 26, 2026 | Status: Upcoming | Explanation:
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Object Deadline: Filed and served by August 26, 2026 | Status: Upcoming | Explanation:
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Go to the Final Approval Hearing Scheduled for September 24, 2026 at 3:00 P.M. Eastern | Status: Upcoming | Explanation: Ask to speak in Court about the Settlement. More details on how to ask to speak at the Final Approval Hearing are available in FAQ 24. |
