Genworth Life $5.1M Insurance Rate Increase Settlement

If you own or previously owned a Gold or Gold II Universal Life Policy insured by Genworth Life Insurance Company, you may be eligible to claim a portion of a class action settlement.

Genworth Life Insurance Company has agreed to a $5.1 million settlement to resolve a class action lawsuit for alleged breaches of contract related to cost-of-insurance (COI) rate increases announced in 2019.

Who are the class members?

• Eligibility:
• Owners of Gold and Gold II policies affected by the 2019 COI rate adjustment
• Policies must have been issued, insured, or assumed by Genworth Life Insurance Company or its predecessors or successors

• Exclusions:
• Owners of policies that terminated due to the death of the insured on or before June 30, 2024, where the 2019 rate adjustment did not result in an incremental deduction before death
• Owners who submit a timely and valid request to be excluded

How much can class members get?

Class members are eligible to receive a minimum settlement relief payment of $100 per policy.

The remaining settlement fund, after deductions, will be distributed proportionally based on each member's share of the overall COI overcharges collected through June 30, 2024.

• Minimum Payment: $100 per policy.
• Pro Rata Share: Calculated based on each member's alleged damages relative to the total damages of all members.

Example Calculation

If a member's alleged damages are $500 and the total alleged damages are $50,000, the member would receive 1% of the remaining settlement fund. This pro-rata calculation ensures that each member receives compensation proportional to their specific overcharges.

No action needed to receive compensation

Class members do not need to take any action to receive their compensation. Payments will be mailed automatically to those entitled.

$5.1 Million settlement fund

The settlement fund of $5,100,000 will cover the payments to class members, administrative costs, attorneys' fees, and incentive awards.

• Attorneys' Fees: Up to 33 1/3% of the final settlement fund.
• Incentive Award for Plaintiff: Up to $25,000.
• Administrative Costs: Deducted from the settlement fund.

Important Dates

• Fairness Hearing: January 3, 2025.
• Deadline to File a Claim: Not applicable as no claim form is required.

When is the Genworth Life Insurance Company payout date?

The Court will hold a Fairness Hearing on January 3, 2025, to decide whether to approve the settlement. If approved, payments will be distributed after resolving any appeals.

Why is there a class action settlement?

The lawsuit alleges that Genworth Life Insurance Company breached its contracts with policy owners by increasing COI rates in 2019, which allegedly violated the terms of the policyholders' contracts. The settlement avoids further litigation risks and costs.