Conseco Life Insurance Co. has agreed to a proposed $73 million nationwide class settlement that would resolve two class policyholder lawsuits Bonnett, Fairbourn, Friedman & Balint, PC brought to challenge the company’s allegedly unlawful rate hikes for its ValuLife and ValuTerm life insurance policies. Pending preliminary court approval, the proposed settlement would provide an immediate 48.5 percent reduction of the cost-of-insurance rate increases imposed by Conseco in November 2011 for a five-year period from when they became effective, followed by a 30 percent reduction that will remain in place over the life of the policies unless and until Conseco meets specified objective criteria proving that a limited increase is necessary to preserve its financial stability. Class members will receive detailed notice of the proposed settlement upon preliminary approval by the court, which is expected in February 2013.
The Court has approved the $88 million settlement with Defendants Greenberg Traurig, LLP and Quarles & Brady, LLP in Facciola v. Greenberg Traurig et al, 2:10-cv-01025-FJM (D. Ariz.). Distribution of the Net Settlement Funds to members of the Mortgages Ltd. and Radical Bunny investor classes is currently expected to be accomplished in two stages: one in November 2012 and one in March 2013.