Bally

I. BACKGROUND

4 A. Form 94030 Life Insurance Policies 5 Bally purchased a flexible premium adjustable insurance policy, Form 94030, from State 6 Farm on April 8, 1994, on behalf of her daughter. Compl. ¶¶ 11, 47 (dkt. 1); see also Class Mot. 7 Ex. B (dkt. 93-4) (“Policy”). This Policy “provide[s] policy owners a savings, or interest-bearing 8 component that is identified in the Policies . . . as the ‘Account Value.’ Under the terms of the 9 Policies, the Account Value consists of an interest-bearing account that accumulates over time.” 10 Compl. ¶ 19. “The money that makes up the Account Value is the property of the policy owner 11 and is held in trust by [State Farm].” Id. ¶ 21. 12 The Policy authorizes State Farm to take a “Monthly Deduction” from the Account Value. 13 Policy at 9. The monthly deduction “is made each month, whether or not premiums are paid, as 14 long as the cash surrender value is enough to cover that monthly deduction. Each deduction 15 includes: (1) the cost of insurance, (2) the monthly charges for any riders, and (3) the monthly 16 expense charge.” Policy at 9. The “expense charge” is $5.00. Policy at 3. 17 The dispute in this case centers on…