This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Insurance
Class Action
Life Insurance Policies

In re Conseco Life Insurance Co. Life Trend Insurance Marketing and Sales Practices Litigation

Published: Feb. 8, 2014 | Result Date: Nov. 8, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 3:10-md-02124-SI Settlement –  $35,000,000

Facts

Several class actions were filed against Conseco Life Insurance Co. involving its decision to increase cost of insurance and expense charges for "Lifetrend III" and "Lifetrend IV" Policies. The lawsuits were later consolidated.

Result

The parties agreed to a settlement that provided several categories of benefits to certain class members. For example, some policyholders may be entitled to receive a cash payment based on a re-crediting of the cost of insurance charges that Conseco deducted from his or her accumulation account beginning in October 2010, plus interest. If the policyholder elects this option, his or her policy would terminate. In all, the economic value of the settlement was estimated at approximately $27 million, excluding costs, attorney fees, incentive awards, and settlement administration costs. The court subsequently granted plaintiffs' request for attorney fees and costs. As such, the court awarded in excess of $6.9 million in attorney fees; more than $1.07 million for litigation expenses; and $5,000 to each of the six named plaintiffs in service awards.


#100406

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390