NU Online News Service, April 8, 1:55 p.m. – A proposed settlement in a class-action long-term care suit against Conseco Inc., Carmel, Ind., has been finalized by a Pennsylvania court.
The case, Irene Milkman v. American Travellers Life Insurance Company, et al. (case # 3775), was filed because of large premium rate increases in long term care contracts issued by American Travellers, a Pennsylvania company purchased by Conseco.
The settlement, which was developed by plaintiffs' attorney Allan Kanner of Allan Kanner & Associates, New Orleans, and Conseco, is valued at $25 million to $30 million. It offers several options to a class of up to 750,000 plaintiffs.
The options include accepting a new Conseco policy, accepting a nonforfeiture benefit or holding existing Conseco LTC contracts.
The settlement also offers policyholders the option of purchasing a new Conseco annuity contract or indexed universal life policy.
In his order, signed April 1, Judge John Herron of the Philadelphia Court of Common Pleas, declares that the stipulation is binding on all class members as well as being preclusive in all pending and future lawsuits.
