Horace Mann Hit By $12.35 Million Verdict For Misrepresentaion

27 Jul 2007

MONTGOMERY, Ala. - June 27, 1999 - A Perry County jury returned a $12.35 million verdict against an Illinois insurance company, finding for a woman who said the company misrepresented the terms of her life insurance policy.

Attorneys for Springfield, Ill.-based Horace Mann Insurance Co. labeled the verdict an "outrage" and announced they will appeal the Friday decision if the trial court upholds it. In post-trial motions the court will be asked to overturn or reduce the verdict.

Unfair and deceptive insurance practices are becoming more common as causes of action in our court system. The claims are often filed on behalf of policy holders who have been deceived about the nature of the coverage provided or who have been encouraged to take unwise steps that only benefit the insurance company and result in greater premiums.

Although virtually all states have insurance departments that regulate the sales and marketing practices of insurance companies it is becoming apparent that some companies continue to actively engage in fraudulent and deceptive sales practices. These practices, which are frequently illegal, are particularly detrimental to the public because they prevent policyholders from having the proper or necessary coverage and benefits in a time of need. They also impact the confidence that the public has in the insurance industry.