Kansas City Life Insurance Settles Class Action Lawsuit for $45 Million

Kansas City Life Insurance Company has agreed to a $45m settlement in a class action lawsuit regarding cost of insurance rates in certain universal life and variable universal life policies. The settlement involves approximately 88,000 policyholders and aims to address all current and potential claims. The company denies any liability or wrongdoing and will vigorously defend any actions if the courts do not approve the settlement.

Kansas City Life Insurance Company (KCL) has entered into a $45 million settlement agreement to address claims in a class action lawsuit concerning the cost of insurance rates in certain universal life and variable universal life policies. The settlement, which involves approximately 88,000 policyholders, awaits preliminary and final approval from the courts.

The proposed settlement aims to resolve all current and potential claims related to the cost of insurance rates used by KCL in administering several of its universal life and variable universal life policies. The settlement includes policies such as Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, MGP, PGP, Chapter One, Classic, Century II, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer II, and Ultra 20 (96), issued and administered by KCL and active on or after January 1, 2002 [2].

The settlement will also address claims in ongoing cases such as van Zanten and Vittetoe v. KCL, van Zanten v. KCL, Sheldon v. KCL, Fine v. KCL, and McMillan v. KCL [2]. Settlement proceedings related to the Sheldon litigation will be held before the 16th Circuit Court, Jackson County, Missouri, while other claims will be heard by the US District Court for the Western District of Missouri [2].

Walter Bixby, president, chief executive officer, and vice chairman of KCL, stated, "We believe the settlement is the right course of action to remove future uncertainty and ongoing legal expense, serving the best interests of the policyholders, company, and shareholders, and will allow us to focus on moving forward to better serve our policyholders and the life insurance marketplace" [1].

KCL, established in 1895, is headquartered in Kansas City, Missouri, and operates in 49 states and the District of Columbia. The company provides financial protection through life insurance and annuities [1].

References:
[1] https://finance.yahoo.com/news/kansas-city-life-insurance-pay-093057840.html
[2] https://www.marketscreener.com/quote/stock/KANSAS-CITY-LIFE-INSURANC-120787177/news/KANSAS-CITY-LIFE-ANNOUNCES-A-POTENTIAL-NATIONWIDE-SETTLEMENT-IN-COST-OF-INSURANCE-CLASS-ACTION-LITIG-50325085/