NU Online News Service, Nov. 30, 1:13 p.m. – Americo Financial Life and Annuity Insurance Company, Kansas City, Mo., has announced a proposed settlement of a class action lawsuit involving annuities and life insurance policies sold as part of Section 403(b) plans.

A state court judge in Laredo, Texas, has a hearing on the proposed settlement for Jan. 25, 2002.

A group of teachers brought the suit against Americo, which was formerly called College Life Insurance Company of America, in Laredo in July 1999, on behalf of a class that includes 100,000 teachers and other school district employees. Most members of the class are in Texas and California, Americo says.

A court gave the proposed settlement agreement preliminary approval Oct. 9.

The proposed agreement includes general policy relief of free accidental death benefits or product transfers, a claim resolution process for policyholders with complaints about the products they purchased or the manner in which the products were marketed, and modifications to certain marketing practices, Americo says.

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