Kansas City Life Insurance Co. Settlement: $40M

• All individuals who own(ed) one or more of the following Kansas City Life Insurance policies active on or after January 1, 2002: Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, MGP, PGP, Chapter One, Classic, Century II, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer II, Ultra 20 (96)

• A separate subclass (the Sheldon class) includes Missouri residents who owned Century II life insurance policies during the same period.

Not required.

Kansas City Life Insurance Co. has agreed to pay $40 million to resolve claims that it charged excessive insurance costs in violation of its life insurance policy terms. Plaintiffs alleged that KCL:

• Used non-mortality-related factors to set insurance rates

• Failed to reduce rates when mortality expectations improved

• Improperly used company expense factors despite charging a separate monthly expense fee

The class action claims that these practices resulted in inflated monthly deductions that reduced the value of policyholders’ accounts.

KCL denies all allegations of wrongdoing, but agreed to settle to avoid further litigation.

What Class Members Can Receive

Class members will receive a cash payment from the settlement fund. The amount will be based on:

• How much they paid in insurance costs over the class period

• Individuals who paid more will receive larger shares of the settlement fund

There is no claim form required. Payments will be made automatically to eligible policyholders who do not opt out.