advertisement

$15 million settlement announced in Missouri insurance case

Tuesday, April 21, 2009 | 12:32 p.m. CDT

KANSAS CITY — Three insurance companies have agreed to pay $15 million to settle a long-standing lawsuit over long-term care policies in Missouri.

The settlement covers more than 1,600 people who bought policies from Jacksonville, Fla.-based American Heritage Life Insurance Co. and Largo, Fla.-based Wakely and Associates. Mutual of Omaha Insurance co-insured the policies. Long-term policies cover the cost of nursing homes or coverage for chronic illnesses.

Two Macon residents sued the companies in 2002, claiming they sold the policies with low premiums and stacked on steep increases. A judge certified the case as a class action in 2007.

American Heritage and Mutual of Omaha will pay $11 million, while Wakely will pay $4 million. The three have denied wrongdoing.


Like what you see here? Become a member.


Show Me the Errors (What's this?)

Report corrections or additions here. Leave comments below here.

You must be logged in to participate in the Show Me the Errors contest.


Comments

Leave a comment

Speak up and join the conversation! Make sure to follow the guidelines outlined below and register with our site. You must be logged in to comment. (Our full comment policy is here.)

  • Don't use obscene, profane or vulgar language.
  • Don't use language that makes personal attacks on fellow commenters or discriminates based on race, religion, gender or ethnicity.
  • Use your real first and last name when registering on the website. It will be published with every comment. (Read why we ask for that here.)
  • Don’t solicit or promote businesses.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report comment" link.

You must be logged in to comment.

Forget your password?

Don't have an account? Register here.

advertisements