Agent sells life insurance to woman seeking retirement plan: Fraud: Violation of consumer sales practices act: Postverdict settlement

Law Reporter, Apr 2000

Doe v. Commercial Union Life Ins. Co., Ohio, Summit County C.C.P., No. 97 03 2893, Sept. 13,1999.

Doe, 43, hoped to retire early and attended a "retirement planning" seminar presented by Commercial Union Life Insurance Company and its agent, Barnett, a life insurance salesman. She then consulted with Barnett in her home and purchased two "retirement plans" at a cost of approximately $100,000. Six years later, she learned these plans were life insurance policies that were unsuitable for her needs.

Doe sued Commercial Union and Barnett, alleging negligence, fraud, and violations of (1) the Consumer Sales Practices Act, Ohio Rev. Code Ann. 1345.01 et seq., and (2) state regulations governing the sale of life insurance, Ohio Admin. Code ch. 3901-1. Plaintiff claimed Commercial Union had instructed its agents to market life insurance as an investment or retirement plan. She argued this tactic resulted in the sale of life insurance to those who had no need for it. Plaintiff also claimed that by using about $100,000 to buy insurance policies, she lost more than $110,000 in growth on her savings.

Defendants countered that plaintiff knew or should have known she was buying life insurance and the policies she bought were a suitable savings vehicle for retirement.

The jury awarded plaintiff $117,000, plus attorney fees. The parties later settled for $280,000. Plaintiff's expert witnesses were Nancy Hecht, financial planning, Longwood, Fla., and John F. Burke Jr., economics, Cleveland, Ohio.

Defendant's financial planning expert was Ken A. Dodson, Columbus, Ohio.

Plaintiff's Counsel *John F. Hill, Akron, Ohio

Documents in this case are available through the Court Documents section in the back of this issue, courtesy of Mr. Hill.