Do You Have an Aviva Structured Settlement?

John Darer • May 9, 2018

Important News About 2018 Class Action Settlement

Aviva Structured Settlements

    A lawsuit was filed in July 27, 2015, arising out of alleged conduct of Aviva and Athene Defendants, that came to light some time after the latter acquired Aviva USA, a deal that closed in October 2013 , more than four years after Aviva stopped writing structured settlement annuities.

    What was the Aviva /CGU Capital Maintenance Agreement?

    The Aviva Capital Maintenance Agreement ("Aviva CMA") was an agreement between the qualified assignment company and CGU International Insurance plc that was a form of Keep Well Agreement to reassure settlement stakeholders of a commitment to keep the assignee solvent. Aviva charged $500 for the CMA when the structures were placed. The Aviva CMA was instrumental in securing an estimated $1 billion in annuity premium be placed with Aviva USA life insurers and their predecessors.

    John Griffiths, a resident of Hawaii who ended up being lead plaintiff, contacted me in August 2014 after reading my Structured Settlement Watchdog®blog. Together, we sought to get definitive written assurance of the continuance of the Aviva CMA. Based on the marketing materials that Aviva management approved and would have been filed with state insurance regulators and approved for distribution to its appointed agents and the public with issued policies, the plain language of " the obligation shall be absolute, unconditional, present and ongoing " seemed unambiguous. Yet multiple calls to the Athene customer service number by both Mr. Griffiths and I brought inconsistent answers. Something smelled fishy. After two months of foot dragging by Athene, and turfing off by Aviva, we finally received a letter from the legal department of Athene that the Aviva CMA "was terminated according to its terms". 

    Except those terms were never disclosed to appointed agents, in Aviva approved and filed brochures and marketing materials and policy delivery packet, even concealed from front line Aviva employees that appointed agents interfaced with. Outrageous.

    If you are receiving payments from what was originally an Aviva or CGU structured settlement annuity should you panic?

    No
    , there was never any issue of solvency at anytime and this story has a happy ending.

    The Settlement Class

    Includes all beneficiaries of structured settlement annuities assigned to Athene London Assignment Corporation (formerly known as Aviva London Assignment Corporation and as CGNU London Annuity Service Corp.), which includes all annuities covered by the Capital Maintenance Agreement between CGU International Insurance plc and CGNU London Annuity Service Corp. dated February 1, 2002, where such annuities remained in force as of October 2, 2013.

    Excluded from the proposed class are the officers and directors of any Defendant and members of their immediate families and any entity in which any Defendant has a controlling interest, the legal representatives, heirs, successors or assigns of any such excluded party, the judicial officer(s) to whom this action is assigned, and the members of their immediate families.

    Terms of Settlement

    • Requires Athene Defendants to create a new Capital Maintenance Agreement which replicates, and then improves upon, the terms of the CMA whose purported cancellation is at issue in this case. This new CMA will be backed by Athene Holding Ltd., the ultimate, publicly traded, corporate parent of all other Athene Defendants. Plaintiffs' expert has opined that the entity that will issue the new CMA is better capitalized than CGU .
    • It provides cash relief in amounts totaling at least $7.3 million.
    • It requires Defendants to pay the costs of notice and settlement administration up to a total of $200,000 (up to $100,000 for each of the Athene and Aviva
      Defendants), as well as up to an additional $12,500 from each Defendant group for a service award, if approved by the
      Court, to be paid to the named Plaintiff, John Griffiths.
    • It provides for an additional payment by Aviva of 25% of any amount it obtains in resolution of any claim it files against the Athene Defendants for indemnification in connection with the acts at issue in the Amended Complaint.
    Strategic Claims Notice

    Following Court approval and certification of class for purpose of settlement (motion was filed 5/2/2018), notices will go out via the Class Action Administrator.  See Strategic Claims Notice.

    Annuitants were automatically opted in, but could opt-out if they wanted by September 12, 2018, according to the notice (updated). It may also be a good time to review your beneficiary designation to see if it is current. Athene contracted Concentrix to do its customer service work 888-285-4332. If you want to work with your original settlement planner or with me, you will need to complete an authorization form .

    Read my Blogs on Aviva Structured Settlements , for more details and a historical perspective
    Read about my Pro Bono work as the Structured Settlement Watchdog ®


    ONE MORE THING!

    Beware Circling Buzzards Trying to Get You to "Cash Out Your Annuity"

    When the wind blows in a certain direction, out come the unethical actors in the structured settlements secondary market, with a predilection to attempt to hoodwink structured settlement annuitants to sell their structured settlement payment rights for pennies on the dollar . You may receive a phone call or a mailer, or a hundred. Most of the people who contact you are unlicensed and may therefore be unqualified to provide financial advice over your important asset. Their sales practices are completely unregulated and unfortunately, many actors in the structured settlement secondary market seem to have no barometer of right and wrong.


      USAA Life Insurance Company structured settlements
      By John Darer June 9, 2025
      Financial services provider USAA ranks 94th on Fortune 500. USAA Life Insurance Company, which earns the top rating of A++ from AMBest is often super competitive on longer term payment streams.
      Prudential Income Advantage Indexed Structured Settlement Annuity
      By John Darer June 2, 2025
      John Darer reviews Prudential Income Advantage structured settlement annuity, which provides indexed structured settlement annuity option with the potential to grow personal injury settlement funds while offering protection from market declines. 2 IRS Private Letter Rulings!
      structured settlement cash flow
      By John Darer May 27, 2025
      How would you like to have a "job" that provides you options of guaranteed income for life without being fired, guaranteed raises and no income taxes? If you're eligible, there are ALOT of openings. Find out if you're eligible.
      independent life structured settlement annuities
      By John Darer March 16, 2025
      In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
      Prudential and Pacific Life are among the world's most ethical companies
      By John Darer March 13, 2025
      Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
      structured settlement annuity market expansion 2025
      By John Darer March 13, 2025
      John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
      settlement agreement and release
      By John Darer February 11, 2025
      What is a Settlement Agreement and Release? What is the role of a Settlement Agreement and Release in establishing a structured settlement? What is a compromise?
      structured settlement market explained
      By John Darer February 11, 2025
      John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
      tax free structured settlement annuity
      By John Darer February 7, 2025
      A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
      structured settlement beneficiary
      By John Darer January 29, 2025
      Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
      More Posts