Life insurance companies may be permitted to increase premiums for some customers over the life of an insurance policy, but recent complaints against Genworth Life Insuranceaccuse the insurer of taking advantage of policyholders by raising rates to predatory levels.
What is Genworth Life Insurance?
Genworth Life Insurance offers a variety of insurance policies. The company was founded in 1871 as a local company serving residents of the Virgina. Following the company’s expansion into other states, Genworth entered the life insurance business in 1928. For almost 100 years, the company has offered insurance to customers and today holds more than $101 billion in assets. Genworth serves more than one million clients, and claims to pay out more than $7 million in claims every day.
Recently consumers have reported that Genworth may be taking advantage of policyholders by raising policy premiums exponentially.
Is Genworth Increasing Insurance Rates?
According to a number of policyholders, Genworth increased its policy rates in late 2019. Policyholders who purchased policies in the late 1990s and early 2000s said their premiums had not changed drastically until 2019, when Genworth allegedly increased monthly premiums for many of its customers by as much as 140%.
Are the Genworth Life Insurance Rate Increases Unlawful?
Whether or not insurance companies are permitted to change premiums depends on the type of insurance the consumer has purchased. Those who have purchased term life insurance establish a premium when the policy is purchased. This premium does not change. Consumers who have whole life insurance will see the cost of their premium rise each year.
Although insurance companies are allowed to increase policyholders’ premiums, increases generally average between 8% to 10% annually. The amount of the premium increase typically depends on the policyholder’s age and thus the risk of the insurer having to pay out. Younger policyholders may see their rates increase by as little as 5% a year, while older customers’ policies may jump upward of 10%. Genworth life insurance customers claim that Genworth has increased premiums between 40% and 140%.
Have Any Genworth Life Insurance Lawsuits Been Filed?
At least one class action lawsuit has been filed against Genworth life insurance over these increases. Brighton Trustees filed suit against Genworth on behalf of a class of policyholders affected by the premium hikes. The plaintiffs seek to represent a class of Genworth Life and Annuity Insurance Company policyholders “who have been or will soon be subjected to a massive, unlawful and excessive cost of insurance,” according to the lawsuit.
Genworth’s own policies state that the company will base pricing changes on its predicted performance of future investments, earnings, and losses, the suit states. The insurer’s policy specifically states that prices will not be increased to recoup past losses. The lawsuit also points out that Genworth’s policies state that price increases will be applied uniformly to similar policyholders, which allegedly is not occurring. Genworth is also accused of refusing to provide reports on the value of future policies and death benefits, despite its own policy ensuring that the reports would be available upon request.
In addition to potentially violating its own policies, Genworth is also accused of engaging in predatory practices toward policyholders. Many of the consumers affected by the rate increases are age 75 or older and purchased the policies decades ago to protect loved ones. Now, they may be struggling to continue paying their premiums at a time when they need life insurance most.
If you have a Genworth life insurance policy that was issued in the late 1990s or early 2000s and have had your premiums increase exponentially, you may be able to speak with an experienced attorney about the legal avenues available to you. Many policyholders may qualify to join, or file, a class action lawsuit against the company and pursue compensation and reimbursement for the inflated prices. Additionally, policyholders who have lapsed premium payments or have been forced to surrender their policies due to the increased pricing may be entitled to have their life insurance policies reinstated.
The Genworth Life Insurance Lawsuit is Case No: 3:20-cv-00240-DJN, filed in the U.S. District Court for the Eastern District of Virginia, Richmond Division.
Join this Genworth Cost of Insurance Rate Increase Class Action Lawsuit Investigation
Genworth policyholders who were issued their policy in the late 1990s through the early 2000s may qualify for this investigation.
If you were issued a policy by First Colony Life Insurance Company or an affiliate of General Electric Company, which were later transferred to Genworth, you may also qualify for this investigation.
The life insurance policies affected are as follows:
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