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Insurer Hit With Class Action Over Cancer Costs

Law360 (May 20, 2009, 12:00 AM EDT) -- A cancer patient who purchased supplemental insurance from Transamerica Life Insurance Co. has hit the insurer with a proposed class action for unlawfully redefining the policy term "actual charges" to allegedly avoid paying incidental cancer treatment costs to thousands of clients.

Named plaintiff Denny Lindley filed suit in the U.S. District Court for the Western District of Oklahoma on Tuesday, claiming Transamerica knowingly denied or underpaid his claims based on an improper interpretation of the term in his guaranteed renewable cancer insurance policy.

"Rather than paying...
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