Kansas City Life Insurance Company Announces Nationwide Settlement of Cost of Insurance Class Action Litigation for $45M

Kansas City Life Insurance Company has agreed to pay $45 million to settle a nationwide class action lawsuit related to the cost of insurance rates used in certain universal life and variable universal life policies. The proposed settlement, which is subject to court approval, will address claims from approximately 88,000 policyholders and resolve all current and potential claims related to the cost of insurance rates used in various policies issued and administered by KCL.

Kansas City Life Insurance Company (KCL) has announced a potential nationwide settlement in a class action lawsuit related to the cost of insurance rates used in certain universal life and variable universal life policies. The proposed settlement, which is subject to court approval, will address claims from approximately 88,000 policyholders and resolve all current and potential claims related to the cost of insurance rates used in various policies issued and administered by KCL [1].

Under the terms of the proposed nationwide Settlement Agreement, KCL has agreed to pay $45.0 million to address the claims. The settlement would resolve claims related to 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) policies that were issued and administered by KCL and that were active on or after January 1, 2002 [1].

The proposed settlement will also address claims asserted in ongoing cases such as van Zanten and Vittetoe v. KCL, 4:25-cv-00095-BP, US District Court for the Western District of Missouri; van Zanten v. KCL, 4:25-cv-00179-DGK, US District Court for the Western District of Missouri; Sheldon v. KCL, 1916-CV26689, 16th Circuit Court, Jackson County Missouri; Fine v. KCL, 2:22-cv-02071-MWC-PD, US District Court for the Central District of California; and McMillan v. KCL, 1:22-cv-01100-BAH, US District Court for the District of Maryland [1].

Walter E. "Web" Bixby, President, Chief Executive Officer and Vice Chairman of the Board 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].

The settlement agreement is conditional upon approval by each of the courts. Dates for settlement approval hearings have not yet been set. In entering the Settlement Agreement, KCL does not admit to any liability or wrongdoing of any sort with regard to any of the claims or allegations in the current actions or in any future actions [1].

References:
[1] https://www.prnewswire.com/news-releases/kansas-city-life-announces-a-potential-nationwide-settlement-in-cost-of-insurance-class-action-litigation-302490209.html