Are you a Genworth/GE Capital Assurance policyholder? Did you receive a mail about a class action on the settlement to resolve claims that Genworth took advantage of its policyholders with “massive, unlawful and excessive” premium increases? This review will help you partake in the class action settlement after confirming the authenticity of the mail.
What Is Genworth/GE Capital universal life price Hike Class Action Settlement?
GE Capital Assurance Co. is now owned by Genworth Life Insurance Co., whose affiliate previously litigated a class action lawsuit in a federal court contending that the insurer took advantage of its policyholders with “massive, unlawful and excessive” premium increases.
The Genworth class action lawsuit alleged these decades-old universal life policies were subject to a price increase beginning in late 2019. Even consumers who haven’t yet seen these price increases could be subjected to the price hikes in the future, the plaintiffs allege.
The price increases reportedly raise the monthly cost of insurance between 40% and 140%. For many life insurance policyholders who are now 75 or older, these price increases can cause financial harm.
What Is This Class Action All About?
According to the prior Genworth class action lawsuit against the company, those policies reportedly promise that cost of insurance changes will be based on expectations of “future investment earnings, mortality, persistency, expenses and taxes,” stressing that changes will not be made to recoup prior losses. Other terms ensure that any price increases will be applied uniformly to all policyholders based on age, policy age, net risk, and premium class.
However, Genworth may have violated these terms with a massive and illegal price increase.
According to the Genworth class action lawsuit, that price increase violated the company’s own policy terms.
Despite promises to not implement price changes to recoup prior losses, GLAIC allegedly increased the cost of insurance prices to boost profits and the company’s “failing” long-term care business which was hit with severe losses over the last 10 years.
The class action lawsuit notes that the insurance company continues to see positive gains from tax laws and mortality improvement. However, Genworth allegedly ignored these gains when deciding to raise the premium costs for policyholders.
“Not only did GLAIC ignore positive changes in enumerated factors (like the $154 million in tax benefits from the corporate tax reform), but recent changes in mortality, persistency, investment earnings, and expenses could not possibly warrant an increase, much less one of this massive size,” the Genworth class action lawsuit alleges.
The rate increases apply to universal life or “flexible premium” life insurance policies issued in the late 1990s or early 2000s. These are universal life insurance policies, not term life and not long-term care policies. The universal life insurance policies were initially issued by GE Capital Assurance Co. and were later taken over by Genworth.
The life insurance policies affected are as follows:
- GE Gold
- GE Gold II
Who Is Eligible?
The settlement benefits all class members who purchased a GE Gold or GE Gold II insurance policy. Or class members of GE Capital Assurance Company or Genworth policyholder who received a rate increase on universal life insurance policies issued in the late 1990s or early 2000s.
How To Be Part of This Settlement
For a class member to partake in this settlement, they must submit their Valid claim on the settlement website.
What Is The Pay For This Settlement?
The pay for this settlement varies and the proof of purchase is not necessary.
As you submit your claim to the settlement website, just like SiriusXM’s class action settlement we have reviewed , you’re doing so under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim.