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 1 long as the cash surrender value is enough to cover that monthly deduction. Each deduction 2 includes: (1) the cost of insurance, (2) the monthly charges for any riders, and (3) the monthly 3 expense charge.” Id. 4 The dispute in this case centers on the first factor—the COI. The Policy states:

5 The cost of insurance is the monthly cost of insurance rate times the difference between (1) and (2), where: 6 …