Insurance policies

Illinois Mutual cashes in by canceling lifetime health insurance policies, alleges class action lawsuit

A proposed class action lawsuit alleges that the Illinois Mutual Life Insurance Company illegally canceled more than 20 “lifetime renewable” insurance policies because it believed they were no longer profitable.

The 21-page case alleges that Illinois Mutual breached its contractual promise to offer lifetime health insurance, a policy that guarantees continuous coverage for an insured’s life as long as premiums are paid. The lawsuit argues that Illinois Mutual terminated all remaining non-cancellable policies, for which the plaintiff and others who have “entered their golden years” had supposedly paid premiums for about 50 years, at risk consumer health because they were no longer profitable. .

“The plaintiff and the class members lost their health coverage at a time when they needed it most, a time when no other insurance company would give them an insurance policy without it costing a fortune in due to their age and health,” the suit states.

According to the complaint, Illinois Mutual’s lifetime health policy states that lifetime coverage is provided as long as consumers pay a premium on time. The lawsuit claims that Illinois Mutual failed to obtain authorization from the California Department of Insurance (CDI) before canceling the insurance policies. According to the complaint, CDI long-term care insurance guide stipulates that individual policies are guaranteed renewable and can only be canceled by the insurance company if the premium is not paid on time or due to the age or state of health of the insured.

Plaintiff originally purchased the policy when he resided in Michigan, but Illinois Mutual has accepted his constant payments since moving to California in 1976, according to the case. Although Michigan allegedly approved the cancellation of plaintiff’s policy, California did not, the lawsuit states.

According to the complaint, an employee of Illinois Mutual gave the plaintiff six months’ notice of the cancellation of the policy via email in April 2021. According to the email, the discontinuance was issued because only 30 people insured with the same policy were still alive, the lawsuit reports.

The complaint points out that the plaintiff has fallen ill in the last few years and urgently needs health coverage to receive treatment.

The case stings that Illinois Mutual acted with “maliciousness, oppression, fraud and despicable conduct in conscious disregard of the rights of [plaintiff]“, who will now have to endure” the worst hardships, perhaps even death “.

The lawsuit seeks to represent all consumers and distributors whose Illinois Mutual “renewable for life” health policy was overturned.

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