Phoenix offers $100 million class pact.(Phoenix Home Life Mutual Insurance Co. offers to settle class action lawsuit)

National Underwriter Life & Health-Financial Services Edition, August, 1996 by West, Diane

Phoenix Home Life Mutual Insurance Co. has made an offer to settle a class action lawsuit filed in 1995. Phoenix was sued over its alleged churning and vanishing premium schemes related to retirement savings vehicles. The offer, which Phoenix claimed is worth between $50 million and $100 million, would affect 650,000 policyholders. The terms of the offer would allow policyholders to chose among multiple benefits to recover their losses.

Almost 650,000 current and former Phoenix Home Mutual Life policyholders will have the option of recouping policy losses through several benefit choices the company is offering to address allegations of nationwide vanishing premium, churning and twisting schemes.

The Hartford-based insurer's August 13 settlement offer comes almost...

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