YOU HAVE FOUND OUR OLD WEB SITE. BE SURE TO CHECK OUT OUR NEW AND IMPROVED SITE!     CGU Life Reaches Settlement in Class Action     CGU Life Insurance Company of America ("CGU"), formerly known as Commercial Union Life Insurance Company of America, announced the settlement of a class action lawsuit affecting approximately 14,000 teachers and other school district employees, most of whom are in Texas. The suit, filed by a group of teachers in Corpus Christi, Texas, is subject to court approval on January 23, 2002, and involves annuities sold as part of Section 403(b) Plans.   The proposed settlement has been valued at approximately $8.1 million, and includes General Relief of shortened surrender penalties and annuitization periods, and a Claim Review Process for policyholders with complaints about the product marketing. In addition, CGU and other Defendants to the suit have agreed to additional disclosures at the point of sale.   The suit was filed on April 13, 2000, in the 105th District Court of Nueces County, Texas, and names CGU, marketing companies, and agents. The parties have been in settlement negotiations for nearly a year, when a settlement was announced and preliminarily approved by Judge Manuel Banales on October 5, 2001. Notice of the proposed settlement is to be mailed to class members beginning November 13, 2001.   Lead Counsel for the Class, G. Wade Caldwell of San Antonio based Martin, Drought & Torres, Inc. commented on the settlement as follows: "We are very pleased with the structure of the settlement and believe it addresses the complaints made by our clients and the other Class Members."   CGU spokesman, Richard J. Kypta, Senior Vice President and General Counsel responded to the settlement by stating: "We believe this proposed settlement provides a reasonable resolution of this dispute for CGU and others concerned. In addition, any of our policyholders who do have complaints will have them evaluated in a quick, efficient and cost-effective manner. This settlement is consistent with our commitment to our policyholders and their satisfaction with CGU." CGU is represented by Mark T. Davenport and Keith R. Verges of Figari Davenport & Graves, L.L.P. of Dallas, Texas.   For further information, please contact: Richard J. Kypta — 617-786-2110 — spokesman for CGU, or G. Wade Caldwell — 210-220-1323 — Lead Counsel for the Class.   If you bought certain tax sheltered annuities ("TSAs") Issued by Commercial Union Life Insurance Company of American, now known as CGU Life Insurance Company of America ("CGU") at any time prior to June 1, 2001 click here to learn how this court-ordered notice may affect your rights.     Home | Disclaimer | © 2001 403(b)wise. All rights reserved.				Related Information: College Life Reaches Settlement in Laredo Class Action