Pennsylvania Court Approves Conseco LTC Class Settlement
A proposed settlement in a class action long term care suit against Conseco Inc., Carmel, Ind., has been approved by a Pennsylvania court.
The case, Irene Milkman v. American Travellers Life Insurance Company, et al. (case #3775), was filed because of large premium rate increases in long term care contracts issued by American Travellers Life Insurance Company, a Pennsylvania insurer acquired by Conseco.
A settlement developed by plaintiffs’ attorney, Allan Kanner of Allan Kanner & Associates, New Orleans, and Conseco offered 751,374 plaintiffs several options. The settlement is valued at approximately $34.7 million.
According to the court opinion, fewer than 200 objections to the settlement were received and fewer than 5,000 class members opted out of the settlement.
Approximately 85,000 actively participated in the settlement and half of an estimated 246,585 eligible participants are expected to do so at a later date, according to Conlee Whiteley, the attorney representing Kanner & Associates. In addition, nearly 250,000 policyholders will be eligible to participate in the settlement if they experience premium increases in their contracts in the future, she adds.
Options in the settlement include accepting a new Conseco policy, accepting a nonforfeiture benefit or holding existing Conseco LTC contracts.
The settlement also offers policyholders the option of purchasing a new Conseco annuity contract or indexed universal life policy.
In his order, signed on April 1, Judge John Herron of the Philadelphia Court of Common Pleas, declares that the stipulation is binding on all class members as well as being preclusive in all pending and future lawsuits.
The court also found that objections made to due process, constitutionality, procedures, substance and compliance with the law are overruled.
The order also states that plaintiffs and the settlement class discharge Conseco from any claims, actions and suits in the future.