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February 9, 2011updated 13 Apr 2017 8:50am

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

By LII editorial

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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