Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Judge's gavel (Photo: Shutterstock)

Life Health > Life Insurance > Permanent Life Insurance

Missouri Jury Awards $28.36M in Universal Life Case

Your article was successfully shared with the contacts you provided.

A state court jury in Kansas City, Missouri, has awarded a $28.36 million verdict to the plaintiffs in a class-action case involving flexible-premium, adjustable universal life insurance policies.

The plaintiffs filed the suit have accused the issuer, Kansas City Life Insurance Company, of basing cost-of-insurance-charge increases on factors other than future mortality experience, in conflict with the policies’ cost-of-insurance provisions, over a period of about 30 years.

Patrick Stueve, the lead trial counsel for the plaintiffs, said the verdict will provide substantial relief for the class members. The verdict “is particularly gratifying in light of our efforts to try to resolve this case many times prior to trial,” he said.

Kansas City Life said it does not believe the facts or the law support the jury’s verdict.

“The company will seek to overturn the verdict in post-trial motions with the court,” the insurer said in a statement. “If the court does not grant these motions, the company intends to vigorously challenge the verdict through an appeal.”

The lead plaintiff, David Karr, is a Savannah, Missouri, resident who represents a class of about 8,000 Missouri residents who now own or who have owned Kansas City Life universal life policies.

The case is Karr v. Kansas City Life Insurance Company, 1916-CV26645, at the 16th Circuit Court of Jackson County, Missouri.

The Karr case is one of five universal life class actions against Kansas City Life brought by clients of Stueve’s Kansas City-based law firm, Stueve Siegel Hanson, and another Kansas City-based law firm Miller Schirger.

The Kansas City Life suits are part of a wave of suits that policyholders have filed against life insurers over universal life cost-of-insurance increases in recent years.

(Photo: Shutterstock)


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.