Conseco Life Secures Class Action Victory

Skadden clients Conseco Life Insurance Company and CNO Financial Group, Inc. secured the dismissal with prejudice of a putative class action complaint brought by two former Conseco Life policyholders who challenged the company's increases to cost of insurance (COI) charges. On April 9, Judge Susan Illston of the U.S. District Court for the Northern District of California concluded that because the plaintiffs had surrendered their policies and agreed in the surrender form that the only liability Conseco Life owed them was the payment of their policy proceeds, they could not pursue a claim for breach of contract and consequential damages as a result of the COI increases.