Genworth Insurance Company has a long standing tradition of outstanding performance in business. According to the Genworth class action lawsuit, Genworth insurance is the second largest insurance company in the United States. At the turn of the twentieth century, Genworth was a giant in the long-term care field. In order to sell its various insurance products, Genworth allegedly advertised its extensive experience and reputation in the long-term care industry, and its financial strength.

It was during the period of the Great Depression that these advertisements became a necessity. In order to protect its policyholders, Genworth made it mandatory for all of its policyholders to purchase a policy from the company. The price increases were made mandatory as well. As the price increases were implemented, more policyholders became dissatisfied with the company’s policies, and thus the class action lawsuit was filed against Genworth Insurance.

According to the class action lawsuit, the reason behind the price increases was the rise of the “morbidly obese” class. These policyholders are usually aged 60 and above and have high blood pressure, diabetes, and other health problems that increase their monthly risk rates. As a result, when these policyholders purchased a policy from Genworth, they could not get the same monthly premium rates as other policyholders. The company had to raise the price of its life insurance policies in order to cover the increased risk.

Genworth attempted to counter the charge of its unfair price increases by pointing out that there were many legitimate reasons for raising the price of its life insurance policies. Its primary argument was that it was compelled to raise the price of its policies because some policyholders would fail to pay the premium at the new levels. This argument did not convince the plaintiffs, who maintained that the company’s actions were unjustified and therefore violates the law. The class action lawsuit also claimed that the reason for the price increases was discrimination against the disabled and minority policyholders.

After being subjected to a prolonged attack on the validity of its price increases, Genworth finally decided to settle the case out of court. According to the settlement agreement, the insurance company will change the criteria it uses in computing for premiums. It will allow only forty percent of the expected premium increases to be applied to the overall death benefit. This will allow policyholders to purchase a policy without paying unreasonable premiums. Also, the company is required to establish guidelines to be used in determining the amount of premiums to charge to policyholders with pre-existing medical conditions. It is also ordered to institute an education program to educate current and future policyholders on the benefits of having an affordable life insurance policy.

The Class Action lawsuit ultimately settled but not before being forced into expensive litigation. The insurers have also agreed to change the way they compute premiums. In the past, they have charged more than needed to cover the risk involved in insuring the policies. Also, the new rules prohibit them from arbitrarily changing the cost of life insurance policies based on their profitability. These changes were necessary in order for the plaintiffs to recover their losses. This should make life insurance policies affordable to policyholders.

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