LOS ANGELES (AP) — A federal judge in Los Angeles has prohibited an Indiana-based insurer from tripling life insurance rates for more than 50,000 mostly elderly policyholders.
Judge A. Howard Matz ruled in a class-action suit Wednesday that the increase planned by Conseco Life Insurance Co. would result in a breach of contract.
Matz agreed in his ruling with allegations that Conseco used the prospective rate increase to duck a requirement by its primary regulator, the Indiana Department of Insurance, that would have required it to add some $100 million to its reserves.
Tony Zehnder, a spokesman for Conseco-parent CNO Financial Group Inc., said the firm will appeal.
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