Conseco’s attempt to triple premiums fails

No stranger to controversy,
US insurer Conseco Life has been taken to task by Judge A Howard
Matz of the US District Court for the Central District of
California in a class action lawsuit against the insurer brought by
aggrieved policyholders.

In his ruling, Matz barred
Conseco Life’s from tripling the premiums on universal life
policies owned by some 50,000, mainly elderly, policyholders. Matz
ruled that the increase would in effect be a breach of contract
with the policyholders.

Last year, in a similar
action brought against Conseco Life by the Florida Office of
Insurance Regulation, the insurer agreed to establish a $10m fund
to reimburse 12,247 aggrieved policyholders who had their premiums
arbitrarily increased, and pay a $1m penalty to the 37 states
participating in the settlement.

Conseco Life is a unit of CNO
Financial Group, the name adopted by the former Conseco
Incorporated in early-2010.

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