Conseco Class Action Provides Some Relief to Customers with COI Increases
Conseco policyholders affected by the drastic Cost of Insurance ("COI") increases made by Conseco in 2011 may receive some relief in June 2013. A class action suit was filed against Conseco and a settlement has been reached. Policyholders affected by the COI change should be receiving (or have received) a "Notice of Proposed Settlement and Fairness Hearing" outlining their rights under the settlement.
The settlement notice indicates that policyholders will have a few options. The most important seems to be a 5 year "reprieve" in the COI increases. The settlement indicates that the COI adjustments will be reduced by 48% retroactively to 2011. Policyholders that have cancelled their policies will have a one-time opportunity to reinstate their policy without evidence of insurability.
If you received one of these settlement notices and have any questions, please contact us.