Insurance class action lawsuit in the spotlight in Drinker Biddle Alert

Law firm Drinker Biddle's Class action insurance alertlooked at the claims against CIGNA and the Insurance Company of North America, alleging they wrongfully raised, and will continue to wrongfully raise, premium payments due on certain guaranteed renewable long-term care and/or nursing care insurance policies.

The claims allege that at no time prior to the initial sale or the annual renewals of the subject policies did the defendants notify that premium rates would increase. The Plaintiffs allege that the premium rate increases arise from the "underpricing" of the subject policies such that the original premiums did not allow for the maintenance of sufficient reserves to support future claims on those policies.