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MADISON - ST. CLAIR RECORD

Friday, March 29, 2024

Policy holder claims breach of contract, malpractice over lifetime benefit

Lawsuits

EDWARDSVILLE - A lifetime benefit policy holder is claiming breach of contract and professional malpractice over claims an insurance company failed to abide by an agreement penned years ago.

Sheryl Forbeck filed suit Mar. 26 in Madison County Circuit Court against Ohio National Insurance, related entities, and a named individual broker.  She is claiming breach of contract, negligence, and professional malpractice.

According to the suit, she bought the policy at the company's Bethalto office, with an initial variable deferred annuity agreement signed on Nov. 7, 2011.

In a statement, Ohio National Insurance told the Madison Record: "We do not have any information on the specific case you are referencing and also typically we do not comment on pending litigation."

The suit states that following the signing of the agreement, Forbeck handed over $42,335 in 2011, then a further $458,316 in March 2018.

When she made the second payment, the plaintiff claims she was provided with a document laying out how much she would receive annually from age 65 under the guaranteed lifetime withdrawal benefit (GLWB).

According to the plaintiff, she was guaranteed an income of $62,827 a year on a base amount of $1.047,118. She relied on this information and planned retirement at 65.

In January 2019, Forbeck called her broker to ask about a buyout program. At that point, she claims to have been given entirely different information. She was allegedly told she would receive $38,554 a year on a base of $771,087.

Following discussions, the plaintiff asked that her account be closed, which happened in June of that year.

She invested the money with another company, which guaranteed her $62,820 a year to be paid from the age of 66 and a half.

The plaintiff claims she was damaged by the defendants' "failure to honor" the GLWB income through the loss of value of the deposits in the account, loss of 18 months of income, and fees charged.

Forbeck who is seeking more than $50,000 in damages, is represented by Michael J. Hertz of Lucco, Brown, Dawson & Hertz of Edwardsville.

Madison County Circuit Court case number 2020-L-0433.

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