Law Firm Initiates Nationwide Specialization for Lawsuits Pertaining to Indexed Universal Life Policies
In the heart of Columbia, S.C., Robert G. Rikard and Peter Protopapas have dedicated their law firm, RP Legal LLC, to a singular mission: combating the issues surrounding Indexed Universal Life (IUL) insurance policies. Since 2018, Rikard has represented over 400 clients, including retirees, families, business owners, and professionals, in IUL-related cases.
Rikard believes that until insurers focus more on the mechanics of policy performance rather than just selling the insurance product, more litigation will occur. He and his clients have recovered tens of millions of dollars from insurers and financial firms marketing IUL as 'tax-free retirement' or investment plans.
The issues with IUL, according to Rikard, are not isolated cases but the norm. Insurance product abuses in IUL include unrealistic returns and premium financing schemes that leave policyholders financially poorer. This new layer created another opportunity for rogue agents and FIP reps to gouge investors via hidden and high fees.
One of the most notorious IUL-fueled scams involved Future Income Payments (FIP), a structured settlement offering. In one case, Rikard represented clients involved in a Ponzi scheme involving FIP. Scott Kohn, the founder of Future Income Payments, received a 10-year prison sentence for his involvement in the scheme.
Investors were encouraged to fund IUL insurance policies with their FIP payments as a retirement plan. The future pension payment terms required investors to pay an annual interest rate exceeding 100% over a five-year term, which was often hidden.
MLM (multi-level marketing) efforts have also become a problem in the IUL sphere, with promoters using a pyramid-style sales structure to sell life insurance products in deceptive or exploitative ways. IUL-fueled scams continue to evolve, with TikTok videos among the current problems.
RP Legal plans to add teams of lawyers, analysts, and paralegals over the coming months to tackle these cases, big and small, across the country. Rikard explained that the sales force often does not understand the insurance product or its real-world performance, making it crucial for a firm like RP Legal to step in and protect policyholders.
As Rikard expects to find plenty of business due to continued litigation against insurers and financial firms, his mission remains clear: to ensure that IUL insurance policies are sold fairly and perform as promised.
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