Trial Lawyer News
Personal Injury Law News
April 10, 2009
John Hancock Life Insurance Co. settles bias suit, Will pay out $24.4M
John Hancock Life Insurance Co. has agreed to a $24.4 million settlement of a class-action lawsuit that alleged it racially discriminated against African Americans in the sale of life insurance policies before 1959.
In agreeing to settle the case, filed in 2003 by Merle Norflet of Connecticut on behalf of her mother, the Boston company denied any wrongdoing or violation of any state or federal laws.
The lawsuit alleges John Hancock had no-solicitation and no-commission policies prior to 1959 for sales of insurance to African Americans. It maintains that when John Hancock did sell policies to African Americans, it offered them lower-grade policies as opposed to their full range of products, according to documents filed in U.S. District Court in Connecticut.
“There were different grades and classes of life insurance policies, and John Hancock didn’t sell to African Americans what were the better policies for admittedly more money,” said Seth Lesser, an attorney representing the class. “(Norflet’s) parents had bought one of these policies and hadn’t had the opportunity to get what was a better policy.”
Estimates have placed the size of the class in the thousands based on policies dating to the 1930s. Under the settlement, African Americans who purchased, owned, were insured by or were beneficiaries of industrial weekly life insurance policies or monthly debit policies issued by John Hancock prior to 1959 would be entitled to $1,200 per policy.
Any money not claimed by class members or used to pay lawyers’ fees will be donated to organizations dealing with issues that systematically or disproportionately affect African Americans.
In a statement, John Hancock said it was pleased with the proposed settlement, which is subject to final court approval on Aug. 21. “John Hancock Life Insurance Co. is committed to diversity and community, and this settlement of a lawsuit regarding decades-old conduct is consistent with, and advances, its commitment to those values,” the company said.
Sometimes, personal injury expenses can be overwhelming, and contacting a lawyer becomes necessary.
Dealing with insurance companies can sometimes be difficult. If you are considering an injury case, contact the Houston Personal injury lawyers of the Stephens Law Firm at 713-224-0000
The Stephens Law Firm will represent people anywhere in Texas, or across the United States if the case merits it. The communities we have frequently served over the past 22 years include: Houston, Katy, Beaumont, Liberty, Richmond, Rosenberg, Wharton, Corpus-Christi, Waller, Austin, Brownsville, McAllen, Dallas, and San Antonio. We have extensive experience in the County and District Courts of Harris County, Ft Bend County, Nueces County, Wharton County, Bexar County, Liberty County, and Jefferson County.
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