KANSAS CITY LIFE ANNOUNCES A POTENTIAL NATIONWIDE SETTLEMENT IN COST OF INSURANCE CLASS ACTION LITIGATION
Rhea-AI Summary
Kansas City Life Insurance Company (OTCQX: KCLI) has announced a proposed $45 million nationwide settlement to resolve class action litigation regarding cost of insurance rates for certain universal life and variable universal life policies. The settlement would address claims from approximately 88,000 policyholders whose policies were active on or after January 1, 2002.
The agreement aims to resolve multiple ongoing cases across different jurisdictions and requires both preliminary and final court approval. CEO Walter E. Bixby stated this settlement would remove future uncertainty and ongoing legal expenses, benefiting policyholders, the company, and shareholders. The company maintains no admission of liability or wrongdoing in entering this agreement.
Positive
- Settlement of $45 million would resolve all current and potential claims related to cost of insurance rates
- Resolution would provide clarity for approximately 88,000 policyholders
- Settlement eliminates ongoing legal expenses and future uncertainty
- Company maintains strong market presence operating in 49 states and DC
Negative
- $45 million settlement payment represents significant financial impact
- Settlement still requires court approval with no guaranteed timeline
- Multiple ongoing legal cases across different jurisdictions add complexity to approval process
News Market Reaction – KCLI
On the day this news was published, KCLI gained 8.47%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Under the terms of the proposed nationwide Settlement Agreement, which is subject to both preliminary and final court approval, KCL has agreed to pay
The proposed settlement would resolve all current and potential claims related to the cost of insurance rates used by KCL in administering the following universal life and variable universal life policies: Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, MGP, PGP, Chapter One, Classic, Century II, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer II, and Ultra 20 (96) policies (the "Class Policies") that were issued and administered by KCL and that were active on or after January 1, 2002.
The proposed settlement would also resolve the claims asserted in the following ongoing cases: van Zanten and Vittetoe v. KCL, 4:25-cv-00095-BP, US District Court for the Western District of
Settlement proceedings related to the
In entering the Settlement Agreement, the Company does not admit to any liability or wrongdoing of any sort with regard to any of the claims or allegations in the current actions or in any future actions, and notes that it will continue to vigorously defend any and all actions if the Settlement Agreement is not approved by the Courts.
Walter E. "Web"
Kansas City Life Insurance Company
Kansas City Life Insurance Company (OTCQX: KCLI) was established in 1895 and is based in
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements," which are statements, other than statements of historical facts, regarding the Company's plans, financial position and business strategy, and include statements regarding the Company's expected future earnings, capital position and dividend payments. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "expect," "intend," "estimate," "anticipate," "plan," "foresee," "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from the Company's expectations include those identified in its filings with the OTC. The forward-looking statements included herein are made only as of the date of this press release, and the Company does not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
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SOURCE Kansas City Life Insurance Company