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Jul 26, 2013 by |

Bankers Life & Casualty Insurance Co. is the Target of a Class Action Lawsuit over Long-Term Care Insurance

ATTORNEY NEWSLETTER

Bankers Life & Casualty Insurance Company is accused of denying legitimate claims for long-term care to elderly patients in a federal class action lawsuit filed earlier this year.  Bankers Life & Casualty Insurance Co. is alleged to have committed elder abuse because it denied and delayed long-term care insurance claims and raised the prices of premiums without improving benefits to its’ elderly customers.  This class action lawsuit follows years of complaints by state insurance commissioners and consumers about Bankers Life & Casualty Insurance Co. claims processing practices.

According to the attorneys who filed the case, Bankers Life & Casualty Insurance Co. wrongfully withheld payments for people who applied for assisted-living expenses, and created legal hurdles and red tape for elderly customers.  The class action lawsuit also alleges breach of contract, breach of promises, fraud, negligence, and intentional misconduct.  There are 9,000 members in this class action lawsuit who are unhappy with their Bankers Life & Casualty Insurance Co. policies.

Long-term care insurance is intended to pay for nursing, assisted living, adult foster or home health care for elderly customers and people with disabilities.  Bankers Life & Casualty Insurance Co. has been the target of multiple complaints nationwide about its long-term care claims processing and other insurance products.  Bankers Life & Casualty Insurance Co. has had high rates of consumer complaints about its health insurance and annuities policies.

In 2008, the parent company to Bankers Life & Casualty Insurance Co. agreed to pay out more than 6 million dollars in penalties and restitution to settle complaints brought by dozens of state insurance regulators about claims processing practices.  Bankers Life & Casualty Insurance Co. also agreed to spend 26 million dollars improving their claims management processes.

Last year, Bankers Life & Casualty Insurance Co. paid more than 3 million dollars to settle allegations that it failed to live up to the 2008 settlement.  Reviews by multiple states determined that Bankers Life & Casualty Insurance Co. erroneously denied maximum benefits and failed to investigate and settle claims in a timely manner.

According to the complaint filed in this lawsuit, Bankers Life & Casualty Insurance Co. stated that the adult foster home that an 87-year-old elderly customer who moved in to did not meet its policy requirements.  A state insurance division reviewed the matter and forced Bankers Life & Casualty Insurance Co. to pay the claim, 19 months after it was first submitted.  There are numerous elderly customers who have similar complaints.  The class action lawsuit also alleges that Bankers Life & Casualty Insurance Co. violated elder abuse laws by selling policies and failing to disclose large future premium raises that come with no increase in benefits, despite rising health care costs.  In some cases, the premiums were alleged to have more than doubled.

Attorneys at Evans Law Firm, Inc. will continue to thoroughly investigate and prosecute elder abuse and insurance fraud cases.  Evans Law Firm, Inc. handles elder abuse, financial elder abuse, physical elder abuse, annuity fraud, consumer fraud class actions, insurance and banking fraud cases.  If you think that you have witnessed or are the victim of elder abuse, or financial fraud by a life insurance company, bank or individual then, contact the Evans Law Firm at 415-441-8669 for a free and confidential consultation, or email us at info@evanslaw.com

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