Genworth Hit With Class Action Over $226M In Funds

Law360, New York (May 26, 2009, 12:00 AM EDT) -- Genworth Life Insurance Co. has been hit with a proposed class action accusing the company of removing $226.2 million from the reserves for its long-term care insurance policies as part of a scheme to hike up premiums.

In a suit filed Friday, policyholder Robert A. Peisner claims the company blamed the lack of funds in the reserve on a higher-than-expected persistency, which refers to the percentage of policies that stay in force to the end of the period coverage, according to documents in the U.S. District...
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