Insurance Litigation

Smith Phillips is nationally recognized in the field of insurance litigation. Partner Richard T. Phillips was lead counsel in the Crown Life deceptive sales practices litigation, a successful nationwide class action resulting in a $27 million settlement on behalf of purchasers of "vanishing premium" life insurance. Phillips was counsel for the plaintiff in the "pioneer" Ferrell v. Crown Life case (featured below), which was covered by NEWSWEEK, The INSURANCE FORUM, and on national television in the Canadian Broadcasting Company’s widely-watched program, The FIFTH ESTATE.

News Feature

Ferrell v. Crown Life, the Smith Phillips case that helped pioneer "vanishing premium" litigation, was recently featured by both the national and international media. Initially Jane Bryant Quinn covered the case in NEWSWEEK magazine. Quinn quoted Smith Phillips partner Richard Phillips on the phenomenon of citizens turning the courts and civil litigation when public opinion outdistances the legislative process.

Subsequently, the case was covered extensively in The INSURANCE FORUM, a national industry journal. Finally, the case was profiled on Canadian national television on Canada’s most widely-watched television program, The FIFTH ESTATE. In a profile entitled "Vanishing Premiums / Vanishing Trust," this "60 Minutes-type" newsmagazine featured the discovery and litigation efforts in the Mississippi Ferrell case, and the impact on cases in other jurisdictions.

For more information on "Vanishing Premiums" and deceptive life insurance sales practices litigation, click here.

Deceptive Insurance Sales and Servicing Practices

Members of the firm have served as co-lead counsel and/or members of the Plaintiffs Executive Steering Committees on numerous nationwide class actions involving insurance sales and servicing practices. See, for example:

In re Jackson National Life Insurance Company Premium Litigation, MDL Docket No. 1122 (W.D. Mich) (Co-lead counsel in nationwide consolidated Multidistrict class action involving interest crediting practices on interest sensitive life policies in Lansing, Michigan);

In re UICI "Association-Group" Insurance Litigation, MDL 1578 (N.D. Tex.) (Co-lead counsel in nationwide consolidated Multidistrict class action concerning heatlh insurance sales of group association policies in Dallas, Texas.)

In re Manufacturers Life Insurance Company Premium Litigation, MDL Docket No. 1109 (Counsel for original plaintiff and member of Plaintiffs’ Executive Committee in $500 million Multidistrict Litigation class action settlement, San Diego, California);

In re Sun Life Assurance Company of Canada Sales Practices Litigation, MDL Docket No. 1102 (Counsel for plaintiff and member of Plaintiffs’ Executive Committee in $80 million settlement of nationwide life insurance deceptive sales practices case in Newark, New Jersey);

In re General American Life Insurance Company Sales Practices Litigation, MDL Docket No. 1179 (co-lead counsel in consolidated MDL deceptive sales practices litigation in St. Louis, Missouri.)

Smith Phillips has handled numerous cases for individual policyholders  involving deceptive insurance practices resulting in recoveries of actual and punitive damages on behalf of Smith Phillips' clients ranging from $1.5 to $26 million in individual cases.

Partner Richard Phillips writes and lectures throughout the nation on deceptive insurance practices litigation. Presentations include those to the Defense Research Institute [DRI] in New York, the Mississippi Bar in Destin, Florida, and throughout Mississippi to numerous professional organizations. "Deceptive Sales Practices Litigation in the Life Insurance Industry" and "Vanishing Premium Litigation: The Plaintiffs’ Perspective". If you are interested in learning more about deceptive sales practices, please see our featured article link below.

Bad Faith, Independent Representation and Agent Claims

The insurance industry is in a constant state of change. Over the past several years, liability and casualty insurers have sought to offset losses on investments and maximize profits often at the expense of their named insured or independent insurance agents and brokers.

Liability carriers often defend cases under a reservation of rights while aggressively pursuing the defense of claims which exceed policy limits. In such instances, a special obligation is placed upon a liability carrier to assure that its insured is adequately protected by having independent representation. The insured is given the opportunity to select independent counsel, and carriers are required to pay the legal fees reasonably incurred in the defense. Smith Phillips has taken an active role in protecting our corporate and individual clients' rights by monitoring and participating in the defense of these claims.

Casualty carriers often seek to exclude coverage through aggressive adjusting practices or to shift liability to independent insurance agents and brokers. Smith Phillips has successfully represented corporate and individual clients in cases involving bad faith or fraudulent adjusting practices and alleged agent misconduct. The firm has also successfully represented insurance agents and brokers by filing and recovering on cross-claims seeking indemnity, and actual and punitive damages from carriers.

A number of the firm attorneys have extensive experience in insurance "bad faith" cases and automobile insurance litigation. Phillips is the author of the book MISSISSIPPI AUTOMOBILE INSURANCE, First Edition (Harrison Company, 1987), and numerous articles, including "A Guide to Uninsured Motorist Insurance Law in Mississippi," and "Underinsured Motorist Coverage in Mississippi." For other publications on Insurance Litigation, click here. For prominent cases in the field of insurance litigation, see "Prominent Cases."