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.