Genworth Financial started in 1871 as The Life Insurance Company of Virginia. Today, it is a Fortune 500 insurance company selling life insurance policies, annuities, long-term care insurance, and mortgage insurance. Many seniors nationwide are policyholders with annuities, life insurance, and long-term care coverage through Genworth, as the company is one of the leading insurance companies with assets exceeding $106.4 billion as of 2016.
Unfortunately, in the past, Genworth Financial has been accused of allegedly engaging in certain tactics to sell its products. Additionally, the CEO has also expressed a willingness to allow rate increases on existing insurance policies.
Contra Costa County elder abuse lawyers can be consulted if policyholders would like to have an insurance or annuity policy sold by any insurance company (including Genworth) reviewed by a lawyer or if they find themselves surprised by a change in policy terms and conditions.
Are Policyholders at Risk When Investing in Annuities or Insurance?
Annuities, as well as variable life insurance and whole life insurance, are investment products sold largely to seniors because these products often promise safety and limited risk. Annuities, variable life policies and whole life policies may also be marketed with promises of guaranteed income and/or substantial returns on investment with little downside risks
The safety of these investments, however, depends on insurers fulfilling obligations and not changing terms or conditions, premium costs, policy effective dates, or policy requirements. If insurance companies cannot be trusted, consumers who have investment products will need to carefully review all correspondence, policy terms and payouts to ensure they are receiving promised benefits. A lawyer can help review your policies for free.
There have been prior legal actions against Genworth, including a case in which Genworth Mortgage Insurance Corporation was part of a group of financial institutions that agreed to pay $15 million* to resolve charges of colluding with banks to force homebuyers to purchase mortgage insurance from specific insurers (the Evans Law Firm, Inc. was not involved in this case). The result of this was alleged to be “greatly inflated insurance costs for distressed homeowners.”
In addition, Genworth has also communicated a willingness to raise costs of other products the company offers. In January of 2016, the CEO of the insurance company assured shareholders on an earnings call that the company would be okay despite significant stock declines because of “his ability to net regulatory approval in order to hike rates on existing blocks of long-term care policies.”
While these examples affect only the Genworth mortgage insurance holders and long-term care policyholders, every annuity and life insurance policyholder needs to be aware of insurance company statements made and settlements reached.
Those who are counting on annuities and life insurance policies could find themselves facing attempts to change their existing policy terms. Seniors who were expecting income and safe investments could be left in a position where they are forced to accept higher costs, benefit cuts, and other unfavorable changes in coverage, cost or benefits. The elderly are especially vulnerable when this occurs because buying annuities or life insurance policies elsewhere would be difficult (or impossible) due to age.
If you sustained losses because an insurance company did not live up to promises made on an annuity, variable life policy, whole life policy or other insurance policy, you need to get help. Our elder abuse lawyers can assist you in determining what legal recourse may be available to respond to insurance company tactics. We will review your policies for free. Contact the Evans Law Firm, Inc. today at 415-441-8669 or toll free at 888-503-8267.
*NOTE: Specific details regarding case and settlement results are not indications of the results of future cases and settlements, nor should they be held to be guarantees, warranties, or predictions regarding the result of representation by our firm. Furthermore, any message regarding the result of a specific case is not a promise of similar results in future cases, but rather represents the outcome of the specific legal and factual basis from which it arises.