Kansas City Life's Nationwide Settlement Proposal for Policyholders
Kansas City Life Announces Settlement Proposal
Kansas City Life Insurance Company (OTCQX: KCLI) has recently unveiled a significant agreement aimed at resolving ongoing class action litigation concerning insurance rates for certain universal life and variable universal life policies. This initiative targets the cost of insurance rates, and it involves approximately 88,000 policyholders affected by the previously disclosed claims.
Proposed Settlement Details
The proposed Settlement Agreement, which awaits both preliminary and final court approval, entails a payment of $45 million by Kansas City Life. This substantial amount is intended to address the claims related to the insurance rates utilized in various policies, including Better Life Plan, LifeTrack, and several others. These policies have been active since at least January 1, 2002, reflecting the company's commitment to resolve these significant concerns for its policyholders.
Scope of the Class Policies
The class policies involved in this proposed settlement encompass a wide range of universal life and variable universal life insurance products. By moving forward with this settlement, Kansas City Life aims to put an end to the current and potential claims associated with these policies. This settlement extends its reach to cover not only those actively involved in litigation but also other policyholders who may be impacted.
Ongoing Litigation and Settlement Proceedings
The settlement will address claims linked to ongoing cases, including well-known lawsuits such as van Zanten and Vittetoe v. KCL, along with others in various jurisdictions. Specific proceedings will take place in the United States District Court for the Western District of Missouri, focusing on ensuring compliance with legal protocols and judiciously moving the settlement process forward.
Company's Position on Liability
Kansas City Life, in making this settlement proposal, has clarified that it does not admit to any liability or wrongdoing concerning the ongoing claims. The company emphasized its intention to vigorously defend itself should the settlement not receive the necessary court approval. This stance reflects the company's commitment to transparency and accountability, underscoring its operational integrity.
Leadership's Vision for Policyholders
According to Walter E. "Web" Bixby, the President and CEO of Kansas City Life, the decision to settle represents a strategic move to eliminate future uncertainties and legal costs. He highlighted that this course of action serves the best interests of policyholders and the broader insurance marketplace, enabling the company to shift focus towards enhancing its service offerings.
Company Overview
Founded in 1895, Kansas City Life Insurance Company has established itself as a reliable provider of life insurance and financial security. Operating across 49 states and the District of Columbia, the company prides itself on delivering a variety of life insurance products and annuities tailored to meet diverse customer needs. Through its long-standing history and commitment to customer service, Kansas City Life continues to maintain a reputable name in the insurance sector.
Frequently Asked Questions
What is the proposed settlement amount by Kansas City Life?
The proposed settlement amount is $45 million, aimed at addressing claims from approximately 88,000 policyholders.
What policies are involved in the settlement?
The settlement addresses specific universal life and variable universal life policies issued by Kansas City Life, including Better Life Plan and LifeTrack.
Will Kansas City Life admit liability in this settlement?
No, Kansas City Life does not admit to any liability concerning the claims made in connection with this settlement.
Where will the settlement proceedings take place?
The settlement proceedings will primarily be held in the United States District Court for the Western District of Missouri.
What is the company’s focus following this settlement?
Following the settlement, Kansas City Life aims to eliminate uncertainties and legal expenses, allowing a greater focus on improving services for its policyholders.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.