Who: In Re Conseco Life Insurance Co. Life
Trend Insurance Marketing and Sales Practice Litigation
What: Last month, a California Federal Court
preliminarily approved a settlement that will resolve the
above-referenced class action brought by a class of policy holders
against Conseco alleging that Conseco breached the terms of certain
insurance policies when it unilaterally raised the monthly cost of
insurance and expense charges on the polices. The settlement comes
on the heels of a recent ruling in the case partially granting
summary judgment in favor of the plaintiffs.
Plaintiffs' motion argued, inter alia, that
Conseco's arbitrary use of factors not specified in the
policies to raise the cost of insurance and expense charges, in the
face of declining mortality rates, breached the terms of the
policies. In their motion, plaintiffs specifically attacked both
(1) the manner in which Conseco imposed the COI and expense charges
and (2) Conseco's motives for
