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A 91-year-old plaintiff has filed a class action lawsuit against long-term care insurance provider CNA Financial Corp. and its subsidiary Continental Casualty Co., claiming that they illegally target elderly policyholders with massive rate hikes and limited long-term care options.
“Defendants have engaged in an illegal course of conduct designed to reduce its exposure to costly long-term care claims by denying claims of elderly insureds through a scheme of fraud, deception, and manipulation of policy terms, while seeking massive premium increases at the expense of these same insureds,” lead plaintiff Marie Gardner says in her class action lawsuit.
Gardner accuses the insurance giant of increasing its rates by as much as 30 percent at the same time it changed its policies to deny previously-covered stays in assisted living facilities. She estimates that close to 400 people in Connecticut and more than 20,000 people nationwide have been affected by these practices.
Gardner says she was paying into her long-term care insurance policy for 15 years when she broke her hip in 2008 and moved in to an assisted living facility. Her claim was approved and she received her monthly benefits until Feb. 11, 2011, when CNA terminated the benefits because her condition had improved. In April 2012, she fractured her sacrum when she fell down a flight of stairs. When she applied for benefits, CNA denied her claim. She says she was told that the assisted living facility would have to have a nurse on site 24 hours a day to be covered.
In her class action lawsuit, Gardner claims CNA and Continental changed her policy to cover only nursing homes, even though it had previously covered a wide range of care facilities. She says the companies are denying new claims for stays at assisted living facilities.
Gardner cites a previous class action settlement between CNA and the Connecticut Insurance Department that indicated a nurse needed to be on call 24 hours a day at an assisted living facility, but only needed to be on site five hours a day, seven days per week to be covered by the insurance policy. “[A]t the time the CNA reached an alleged ‘agreement’ with the Connecticut Insurance Department, CNA did not disclose to the Insurance Department that it had previously been covering stays at assisted living facilities under this policy,” the class action lawsuit says.
Gardner argues that CNA used the previous class action settlement as a way to get around liability. “CNA is attempting to create a regulatory loophole where none exists,” the class action lawsuit says.
By filing the class action lawsuit, Gardner seeks class certification and an injunction to prevent the insurer from excluding claims for stays in Connecticut assisted living facilities.
Gardner is represented by Sean Collins.
The CNA Insurance Class Action Lawsuit is Marie L. Gardner v. CNA Financial Corp. and Continental Casualty Co., Case No. 3:13-cv-01918, in the U.S. District Court for the District of Connecticut.
UPDATE: The Connecticut Continental Casualty Long Term Care Insurance Class Action Settlement is now open! Click here to file a claim.
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19 thoughts onClass Action Lawsuit Claims CNA Rips off Elderly Policyholders
Are there any class actions lawsuits in Oregon? If not I am considering starting one. Is anybody out there with problems with CNA in Oregon
CNA LTC has notified Florida purchasers of their Long Term Care Insurance (seems to be customers that have paid additional premiums for many years that have the 5% inflation rider to keep them closer to the nursing home increases). My wife and I are two of those policyholders that have paid for the 5% rider for 15 years. We are now told that we can either pay a 26.5 % increase for the 3 years of 2019, 2020, and 2021 to keep our 5% rider or avoid the premium increases by removing the 5% annual inflation rider.This rider was designed by the CNA LTC company to provide needed increased coverage for their elderly consumers which I’m sure they felt and still feel this is necessary with the nursing home inflated costs. The state of Florida seems to be allowing these increases to ensure the CNA LTC company stays in business so that the government doesn’t have to eventually take over the payments to the policyholders, I understand that when I’m communicated to the company’s customer support that the company executives want to not suffer with the help from the government, and maintain their millions of income the answer to me was “No, they want to increase it”. We only have until January 2, 2019 to make our decision for my wife and myself, and since we can’t afford these extravagant increases we will have to cancel our 5% inflation rider. We are both in good health at ages 86 and 77 so we hope to be much older before needing aid and hopefully never needing it to take money away from the company. So by canceling our 5% riders the company says we can’t ever change our decision. I would still like to join the Florida Class Action Suit in case these increases can be reduced. So the question is if I state to the CNA LTC company we are removing our 5% riders but if the increases are reduced we may want to restore the 5% riders if that is possible?
Is there a class action lawsuit in North Carolina?
I searched our archives and did not find any recent class action lawsuits or settlements that we know about. We offer a submission form on our website for you to fill out if you are seeking class action legal help. Attorneys will then review your submission to determine if you have a case. If they feel you qualify, they will contact you directly. You can submit your information here: https://topclassactions.com/start-a-class-action/.
UPDATE: The Connecticut Continental Casualty Long Term Care Insurance Class Action Settlement is now open! Click here to file a claim.
Is there a class action law suit in Illinois against CNA regarding long term p
care premium rate increase. We have received a 95% rate increasr.
Is there a class action Lawsuit in Texas
Looking for a class action suit against CNA in Texas….
Regarding premium increases.
Rates can not be increased due to age or health. Can be increased if all policy holders with xxx series rates are increased
See your application for xxx series. Copy of application usually attached with issued policy.
Read your policy
Is there a Class Action Lawsuit in Nevada?
Please sign me up for any class action suit of thi.s sort (longtermcare insurance ripoff) in New York. I have paid into Genworth for 17 years and am furious about a 60% increase. How do I get involved?Thank you
We signed up in Virginia, about 15 years ago. Have been faithfully paying. We moved to New Hampshire 14 years ago…still paying faithfully. Just received the letter of a 44.96 rate increase. Letter says ONLY due to the state of Virginia approval for the increase, was there a law passed? What is going on here? Ready to hire an attorney for this and/or join the class action. Now that I see other people, in other states, also have a problem with this can hardly believe that many, many others have not questioned this. Who has newly purchased CNA…appears everything has changed and someone is making a run to Switzerland with our hard earned money. HELP!
Joan, I am so upset and scared. We just received the letter of my policy, up almost 50%–have not received husbands yet, I cant get through to anyone for answers in Virginia, where we purchased this so long ago. Most of Continental Casualty Companies websites are not functioning. We do not do face book. Oh my gosh. Have you found out anything? Char Eastman
My LTCi police was issued in Texas May 1993. 30 years ago I wS young and healthy working full time. I paid the many rate increases. I have lived in assisted living facility for 5 YEARS with no out of pocket $$$ thank you CNA. My Age is 85 now. I was about age 50+ on police issue date 1993.
My family is Soooo grateful that I have my CNA LTCi policy.
Is there a suit in Ohio? The rate increases are unbelievable.
Help. Just received the bad news in the mail from Virginia. They say the state of Virginia allowed this…. Rate increase of almost 50% – tried websites and most down. Tried the wonderful state of Virginia and also nothing. Oh my gosh…16 years of payments…attorney will be called. Is there really a class action or is this site a ploy by them?
I need to sign up for the class action lawsuit in the state of Missouri against CNA Insurance Company. Can you help? Phone number 826 g524 3922 or 913 530 2063. Thank you.