Kansas City Life Insurance agrees to pay $45 million to resolve class action lawsuit

Kansas City Life Insurance Company (KCL) has reached a $45 million settlement to resolve issues raised in a class action lawsuit. This lawsuit pertains to the cost of insurance rates associated with specific universal life and variable universal life policies offered by the company. The proposed settlement is directed towards roughly 88,000 policyholders and is contingent upon both preliminary and final court approval.

The primary objective of this settlement is to effectively address all existing and potential claims linked to the cost of insurance rates applied by KCL in the management of its universal life and variable universal life policies. Notably, the impending litigation concerning the Sheldon matter is slated to be adjudicated in the 16th Circuit Court located in Jackson County, Missouri, while all other claims will be considered by the US District Court for the Western District of Missouri.

Although the schedule for the settlement approval hearings is currently undetermined, KCL has made it clear that the courts’ endorsement of the agreement is not guaranteed. It is important to highlight that KCL’s participation in this settlement does not imply any acknowledgment of liability or wrongdoing concerning the claims made in the lawsuits. KCL has stated that it remains prepared to fiercely contest any legal actions if the courts do not sanction the settlement.

Walter Bixby, the vice-chairman, president, and CEO of the KCL board, expressed confidence in the settlement, asserting that it represents the most appropriate course of action to eliminate future uncertainties and ongoing legal expenses. Bixby emphasized that this decision is aligned with the best interests of policyholders, the company itself, and its shareholders. Furthermore, he indicated that this resolution will enable KCL to redirect its focus towards enhancing services for policyholders and fortifying its position in the life insurance market.

Established in 1895, KCL, headquartered in Kansas City, Missouri, specializes in offering financial protection through life insurance and annuities. Presently operational in 49 states and the District of Columbia, the company continues to uphold its commitment to providing essential financial security solutions to its customers.