CNO Financial expects to take $20M legal charge

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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