Jackson National Life Insurance Settles Class Action for $22 Million

A class action suit against Jackson National Life has reached a settlement of $22 million.

The suit was filed by George Farmer in 2002, over the company's fixed annuity policies and the methods it used to set interest rates for new premiums and for premiums previously paid to fixed annuities.

Specifically, the suit alleged that the company failed to notify fixed-annuity policy holders that it would be "crediting higher interest rates to new premiums than it did to previously paid premiums."

The class consists of all Illinois policyholders between July 1, 1989 and Oct. 31, 2008. Class members have 30 days from May 6 to make a claim; the amount recovered will be based on the interest the class member received as owner of the fixed annuity.