Financial giant CNO acknowledges widespread violations in insurance policy terms on the brink of a jury trial.
Pulling the Curtains Back: Exposing the Insurance Scandal
Let's spill the beans, shall we? Law firm heavyweights Weisbrod Matteis & Copley PLLC and DeLaney & DeLaney LLC have scored a significant victory in a nationwide class action lawsuit against CNO Financial Group, Inc. and CNO Services, LLC. The lawsuit alleges that these giants breached insurance policy contracts and overcharged their customers.
The lawsuit concerns "LifeTrend" policies issued by an ex-CNO subsidiary, Conseco Life Insurance Company. The case, known as Burnett, et al. v. Conseco Life Insurance Co., et al., was filed in 2012, and after fierce opposition from CNO, it was certified as a nationwide class action. The plaintiffs allege that CNO unscrupulously hiked premiums and "cost of insurance" charges, going against the agreed-upon policy terms.
CNO's actuaries had predicted that thousands of policyholders would surrender their policies rather than face the overcharges. Their prediction proved accurate, and policyholders collectively lost a substantial chunk of change.
Fast forward to May 7, 2025, just a month before the scheduled jury trial - CNO shockingly admitted to several major breaches. They fessed up to inflating "cost of insurance" charges, misusing the term "mortality charges" despite decreasing mortality rates in the U.S. They also admitted to passing along prior financial losses to the policyholders, a no-no as per the policy terms. To top it off, CNO confessed to neglecting their duty to provide necessary notices to policyholders regarding their premiums and charges.
During the June 16, 2025 jury trial, the question at hand will be if these admitted policy breaches prompted the policyholders to surrender their policies and suffer financially as a result. Interestingly, CNO denies these breaches led to policyholders surrendering their policies or causing any damage to the policyholders and other class members.
In an unexpected twist, CNO and the plaintiffs both deny they can be held liable for the breaches in policies issued by former CNO subsidiary Conseco Life Insurance Company, which earlier settled out of the case for $27 million. These details remain unresolved.
Plaintiffs estimate the total damages to the class at over $70 million, taking into account previous settlement payouts made by Conseco Life Insurance Company. Kathleen DeLaney, co-lead counsel, says, "We can't wait to share the rest of the story with the jury."
Fun Fact: Weisbrod Matteis & Copley PLLC represents a range of clients, from private equity firms to trusts, while DeLaney & DeLaney LLC focuses on civil litigation matters in Indiana's federal and state courts. If you need legal assistance, you can visit them at www.wmclaw.com and www.delaneylaw.net.
This class action lawsuit against CNO Financial Group and CNO Services, identified as a significant business matter, involves civil litigation and allegations of breach of insurance policy contracts, leading to overcharges. As the case progresses, the outcome may impact the finance sector, with potential damages estimated to exceed $70 million. Weisbrod Matteis & Copley PLLC, a firm known for their work in various corporate sectors, is one of the law firms representing the plaintiffs in this complex financial issue.
