The Second Appellate District affirmed an order denying class certification and remanded. The court held that a showing of common policy language and sales materials was insufficient to show that an insurer’s sales agents used a common approach in marketing the insurer’s universal life policies to prospective customers. Further, even if the agents commonly misrepresented the longevity of this type of policy, the plaintiffs failed to show that the materiality of such misrepresentations was common to all policyholders.
Pauline Fairbanks and Michael Cobb sued Farmers New World Life Insurance Co. for using misleading sales tactics in its marketing of universal life insurance policies. Fairbanks and Cobb contended that Farmers misled potential customers as to the actual premium level that would be required to keep such a policy in force until maturity, with the result that customers purchased policies, paid inadequate premiums and found themselves years later with worthless and lapsed policies.
