NU Online News Service, Feb. 13, 2:05 p.m. – The National Association of Attorneys General, Washington, is asking a state court in Philadelphia to seek advice from consumer and regulatory groups before it approves a class-action settlement that could affect up to 750,000 holders of long-term care insurance contracts.
The NAAG letter represents 33 state attorney generals and Puerto Rico, an association official says. At press time, the NAAG was preparing to file the letter today at a hearing in the case of Irene Milkman vs. American Travellers Life Insurance Company. American Travellers was acquired by Conseco Inc., Carmel, Ind.
The letter says the court should seek additional input from the National Association of Insurance Commissioners, Kansas City, Mo.; the American Association of Retired Persons, Washington; and Consumers Union, Washington.
The case involves premium rate increases on LTC insurance. A proposed settlement has drawn criticism from consumer groups.