Plaintiffs, on their own behalf and on behalf of the members of the Class, allege that policies sold by Conseco Life would stop paying premiums after five years if the policy had a high enough cash value. Plaintiffs allege that by 2008, few policyholders were required to pay premiums. In October 2008, Conseco Life sent a letter demanding premium payments and cost-of-insurance charges in an effort to force policyholders to surrender their policies. Plaintiffs allege that this “shock lapse” strategy led thousands of policyholders to surrender their policies.:

The CNO Defendants deny these allegations. The CNO Defendants deny that Conseco Life breached policies owned by Plaintiffs. The CNO Defendants further deny all liability for the actions of Conseco Life because, according to the CNO Defendants, they did not act as the alter egos of Conseco Life. The CNO Defendants further dispute causation and damages and assert their right to require each Class Member to prove those elements of his or her contract claim at individual trials. The CNO Defendants also preserve their right to assert various individualized defenses as to each of the Class Members.

In this lawsuit, the Court decided that certain elements of the claims asserted against the CNO Defendants can proceed as a class action because Plaintiffs satisfied the necessary requirements of federal law governing class actions. The Court determined that a class action is superior to requiring thousands of individual lawsuits, because it will be more efficient for Plaintiffs and the court system. The Court also determined, however, that individualized proceedings may be necessary after the class trial during which individual Class Members may have to show that any breaches of their Conseco Life policy caused them to surrender their Conseco Life policy, that they were damaged as a result, and the amount of those damages. More information about why the Court is allowing this lawsuit to be a class action is in the Court’s written opinion available at https://www.donlinrecano.com/Clients/cno/Index.

On behalf of the Class, Plaintiffs are asking the Court to find that Conseco Life breached the terms of those contracts and that the CNO Defendants are liable for any breach as the alter egos of Conseco Life. Plaintiffs are asking the Court for money damages, including the costs of bringing the lawsuit, such as reasonable attorneys’ fees and litigation expenses, as well as pre-judgment and post-judgment interest on all damages.

The Court has not decided whether Plaintiffs or the CNO Defendants are correct, or whether the former policyholders have suffered any damages. The Court has made several legal rulings in the case. Those rulings, along with the pleadings filed by Plaintiffs and Defendants, are available at https://www.donlinrecano.com/Clients/cno/Index. By certifying this lawsuit as a class action, the Court is not suggesting that Plaintiffs will win or lose the case. The purpose of a class action is to decide those issues on behalf of all Class Members in the class action.
 

No money or benefits are available now. There is no guarantee that money or benefits ever will be obtained. If there is a settlement, you will be notified of your entitlement to recovery and how to obtain it. If Plaintiffs prevail at the class trial, you will be informed as to any additional steps you need to take to obtain a monetary recovery. This may include having to individually participate in discovery and establish in court proceedings in Indiana that any breaches of your Conseco Life policy caused you to surrender your Conseco Life policy, that you were damaged as a result, and the amount of those damages. To be eligible for any recovery as part of this class action lawsuit, you must remain in the class. If you remain in the class and no benefits are obtained, you will have no right to seek recovery of any damages or other relief from the CNO Defendants.