Wells Fargo Bank, National Association v. Transamerica Life Insurance Company

I. INTRODUCTION

On July 25, 2019, plaintiffs filed this action against defendant Transamerica Life Insurance Company (“Transamerica”). Dkt. 1. Plaintiffs allege that Transamerica wrongfully increased the monthly deduction rates (“MDRs”) of certain universal life insurance policies. Id. Plaintiffs filed the operative first amended complaint on October 2, 2019. Dkt. 26 (“FAC”). The FAC asserts claims for: (1) breach of contract; (2) contractual breach of the implied covenant of good faith and fair dealing; (3) tortious breach of the implied covenant of good faith and fair dealing; (4) conversion; and (5) declaratory relief. See generally id. Transamerica filed a motion to dismiss the FAC on October 23, 2019. Dkt. 29-1 (“Mot.”). Plaintiffs filed an opposition on November 27, 2019. Dkt. (‘Opp.”). Transamerica filed a reply on December 20, 2019. Dkt. 32 (“Reply”). The Court held a hearing on January 23, 2020. Having carefully considered the parties’ arguments, the Court finds and concludes as follows.

I. BACKGROUND

A. The Parties 1. The FCI Entities Plaintiff Financial Credit Investment II Trust A (“FCI II Trust A”) is a…