Click here to join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.

MPP Lawsuit (Update 1)

class-actionManulife, Benesure, Davis + Henderson (D+H) and others are reportedly being sued for over $2 billion combined.

It’s part of a class action that alleges (among other things):

  • Benesure underwrote and marketed creditor life insurance—known as the “Mortgage Protection Plan”, or “MPP”—without a licence, and with Manulife’s knowledge and consent. (Manulife purchased Benesure back in October 2012.)

  • Manulife and Benesure presented “deceptive” form documents to clients and sent letters that appeared to be from the client’s mortgage broker and that “strongly” recommended purchasing creditor life insurance.
  • Davis + Henderson transmitted personal information about mortgage clients to Manulife and Benesure without the clients’ consent. (This information was purportedly taken from people’s mortgage applications, which D+H controls by virtue of owning the Expert mortgage origination platform.)

At this point, we have little information about the validity of these claims. The above comes from court documents provided to us on the condition of anonymity.

D+H provided us this comment today:

Privacy and protecting our clients’ personal
information is at the core of our business at D+H. The allegations that have
been made against D+H in this suit are completely without merit, and D+H will
be vigorously defending itself against these allegations.  D+H, its
employees and products, adhere to and respect all privacy laws applicable to
its business and its clients’ personal information.

Manulife said this:

the litigation is now before the courts, it would be inappropriate to comment…Insurance policyholders that purchased Mortgage Protection Plan (MPP)
insurance can feel confident that their policies are backed by a leading
insurance company with some of the strongest financial strength ratings.

We’ll pass along additional insights as they become available.

Rob McLister, CMT