On Aug. 10, the Ontario Superior Court of Justice approved the settlement of the management fee overcharge claim for policies that fall within the groups that were part of a proposed class action Joseph Fantl v. Transamerica Life Canada, announced the insurer in August.
Earlier in the summer the insurer stated that the settlement would require the company to pay an estimated $52 million plus legal and administration costs to settle the claim.
The company's announcement on the settlement approval, said that Transamerica Life Canada will now "move forward with calculating restitution and sending payment to entitled policyholders, which we anticipate carrying out in the fourth quarter of 2009."
The settlement relates to alleged excess management fees that may have been charged on certain segregated fund and universal life policies (See The Insurance Journal, August 2009, page 3).
Transamerica says it is also finalizing its examination of other products and funds that may be affected by excess management fees.
The court document approving the settlement states that "Transamerica estimates that the number of policyholders who fall within the proposed class action is at least 307,446 persons. It is estimated that 200,000 persons will have entitlements under the settlement."