Kansas City Life Insurance Company (KCL) has agreed to a $45m settlement to address claims in class action litigation.
The litigation concerns cost of insurance rates in certain universal life and variable universal life policies.
The agreement, which involves approximately 88,000 policyholders, awaits preliminary and final approval from the courts.
The settlement aims to address all current and potential claims related to the cost of insurance rates used by KCL in administering several of its universal life and variable universal life policies.
The US insurer noted that the Sheldon litigation matter will be heard before the 16th Circuit Court, Jackson County, Missouri.
All other claims will proceed before the US District Court for the Western District of Missouri.
No dates have been scheduled for the settlement approval hearings and KCL stated there is no guarantee the courts will approve the agreement.
The company noted that, by entering the settlement, it does not admit to any liability or wrongdoing regarding the claims or allegations in the lawsuits.
KCL added it will “vigorously” defend any actions if the courts do not approve the settlement.
KCL board vice-chairman, president and CEO Walter Bixbysaid: “We believe the settlement is the right course of action to remove future uncertainty and ongoing legal expense, serving the best interests of the policyholders, company and shareholders, and will allow us to focus on moving forward to better serve our policyholders and the life insurance marketplace.”
Established in 1895, KCL is headquartered in Kansas City, Missouri. The insurer focuses on providing financial protection through life insurance and annuities, operating in 49 states and the District of Columbia.
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