Frequently Asked Questions
This page provides the answers to class members’ most frequently asked questions.
The information provided is in summary form and is not intended as a complete explanation of your rights. For full and complete information, you are directed to review carefully the Notice of Class Action Lawsuit.
What is this Lawsuit About?
This lawsuit is about whether KC Life’s cost of insurance charges and expense charges were consistent with the policy language of its Century II VUL life insurance policies (“Policy” or “Policies”). The Policies have a “Contract Value” that accumulates interest at or above a minimum rate guaranteed under the Policy. The Policies expressly authorize KC Life to take a Monthly Deduction from the Contract value or Contract value of a monthly expense charge and a cost of insurance charge. Plaintiff alleges that KC Life violated the policy in three different ways. First, the Policy permits KC Life to deduct the “Cost of Insurance” calculated using a “Cost of Insurance Rate.” The Policies provide that the monthly Cost of Insurance Rate used “will be determined by [KC Life] based on [KC Life’s] expectations as to future mortality experience.” Plaintiff alleges that KC Life impermissibly uses factors other than those identified in the Policy when setting Cost of Insurance Rates. Second, while the Policy permits a separate “Monthly Expense Charge,” Plaintiff alleges that KC Life impermissibly exceeds the fixed amount for the Monthly Expense Charge and includes amounts exceeding the “Monthly Expense Charge” in the “Cost of Insurance” deduction. Third, Plaintiff alleges that the Policy requires KC Life to reduce “Cost of Insurance Rates” to reflect its improved mortality expectations. You can read Plaintiff’s Petition here.
How does KC Life Answer?
KC Life denies all of Plaintiff’s claims. KC Life has asserted numerous legal and factual defenses. KC Life contends, among other things, that it has determined and determines cost of insurance rates in compliance with the terms described in the prospectus and in the Policies and that KC Life’s administration of the Policies, including Plaintiff’s Policy, has been at all times consistent with the terms as described in the prospectus and the Policies, the terms’ common usage, industry practice, the understanding of federal securities and state insurance regulators, and the reasonable expectations of policyholders. KC Life further denies that the claims asserted in the lawsuit are appropriate for class or representative treatment. You can read Defendant’s Answer to Plaintiff’s Petition here.
What are the Plaintiffs asking for?
The Plaintiffs are asking that the Class be compensated for amounts that were included in the Cost of Insurance and Expense Charge beyond what they allege the Policy allows, and a declaration that Defendant has breached the Policy terms. Plaintiffs also seek pre-judgment and post-judgment interest, and such other relief the Court permits.
Is there any money available now?
No money or benefits are available now. There is no guarantee that money or benefits ever will be obtained.
Am I part of the Class?
Judge Campbell has certified the following Class: All persons who own or owned a Century II VUL life insurance policy issued or administered by Defendant, or its predecessors in interest, that was issued in the state of Missouri and active on or after January 1, 2002.
If someone who would otherwise be a Class Member is deceased, his or her legal representatives are Class Members.
The Class excludes: KC Life; any entity in which KC Life has a controlling interest; any of the officers, directors, employees, or sales agents of KC Life; the legal representatives, heirs, successors, and assigns of KC Life; anyone employed with Plaintiff’s counsel’s firms; and any Judge to whom this case is assigned, and his or her immediate family. If these exclusions apply to you, you are not a member of the Class.
How do I get more information?
You may review the Court’s Order certifying the Class, Plaintiffs’ Petition, and Defendant’s Answer to the Petition, or call 1-844-672-0836.