Class-Action Suit Fines Insurers for Concealing LTC Increases

BY L.A.S.

Three companies were fined for concealing planned rate increases on long-term care policies in the state of Missouri. The companies were: Mutual of Omaha, American Heritage Life, and Wakely & Associates (a third-party administrator).

Under the court settlement of the class-action suit, Mutual of Omaha will have to maintain benefits on current policies with a value of $8.5 million. American Heritage will have to provide benefits to lapsed policies valued at $2.5 million. Wakely has paid a $4 million fine.

Wakely had helped American Heritage with the design, marketing and sale of the long-term care policies.

Those affected included 1670 people in Missouri who bought long-term care insurance policies between 1995 and 2000.