Genworth Sued Over Notice Sent to Insured With Cognitive Impairment

As part of the settlement, Genworth was supposed to send class members disclosures about its intent to increase member premiums along with a coverage options change form, or “modified election form.”

The form: The modified election form McConnell received showed three actions she could take to eliminate, maintain or decrease her premiums in large, bold text — along with a note in small text, at the bottom of the form, that McConnell did not need to return the form if she wanted to keep her current coverage.

McConnell clearly would need all of her lifetime benefits, but she was confused by the form and chose to terminate her coverage, meaning that she would get only $74,547.78 in total lifetime benefits, according to the complaint.

Farley-Hay says in the complaint that she learned about the form and her mother’s choice in April of this year, when Genworth sent McConnell a letter stating that her benefits had ended.

Farley-Hay contends that Genworth knew, or should have known, that McConnell suffers from cognitive impairment.

According to the complaint, “Had Ms. McConnell not suffered from cognitive impairment, she never would have signed the modified election form.”

Credit: zolnierek/Adobe Stock