Bally

I. BACKGROUND

19 Bally purchased a flexible premium adjustable insurance policy, Form 94030, from State 20 Farm on April 8, 1994, on behalf of her daughter. Compl. (dkt. 1) ¶ 11; see also Class Mot. Ex. B 21 (dkt. 93-4) (“Policy”). This Policy “provide[s] policy owners a savings, or interest-bearing 22 component that is identified in the Policies . . . as the ‘Account Value.’ Under the terms of the 23 Policies, the Account Value consists of an interest-bearing account that accumulates over time.” 24 Compl. ¶ 19. “The money that makes up the Account Value is the property of the policy owner 25 and is held in trust by [State Farm].” Id. ¶ 21. 26 The Policy authorizes State Farm to take a “Monthly Deduction” from the Account Value. 27 long as the cash surrender value is enough to cover that monthly deduction. Each deduction includes: (1) the cost of insurance, (2) the monthly charges for any riders, and (3) the monthly expense charge.” Id. The dispute in this case centers on the first factor—the COI. The Policy states:

The cost of insurance is the monthly cost of insurance rate times the difference between (1) and (2), where: …