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CNO Financial expects to take $20M legal charge

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Carmel-based CNO Financial Group Inc. said first-quarter results will include a charge of about $20 million from the tentative settlement of a legal dispute.

Final approval of the settlement, which involves changes in some life-insurance policies, is subject to a court fairness hearing, the Carmel-based insurer said Friday.

The litigation involves changes made late last year to certain policies sold by CNO subsidiary Conseco Life Insurance Co.

Under the tentative settlement, the cost-of-insurance increase implemented by Conseco Life beginning in November will be reduced for certain policyholders. Holders whose policies terminated after November can reinstate their policies with the cost reduction or elect to take a cash-settlement option.

The case is pending in a federal court in the Northern District of Illinois. CNO Financial wants the judge to certify the litigation as a class action to speed the approval of the settlement and to avoid further lawsuits.

This is the second charge CNO Financial expects to take in the first quarter.

Earlier this month, the company said it has agreed to pay $9.9 million to settle allegations by regulators in four states that its Bankers Life subsidiary acted as an investment adviser and broker-dealer without proper licensing.

The payments will be made to the states of Maine, New Hampshire, Vermont and Missouri.
 

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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