About This Settlement
If you were (1) a California citizen on February 13, 2013; (2) you purchased long-term care insurance from CalPERS that included lifetime benefits but did not include automatic inflation protection; and (3) you were subjected to the 85% premium increase announced by CalPERS in 2013 and implemented in 2015 and 2016, then you are entitled to participate in a proposed Class Action Settlement.
On or about January 28, 2016, the Court in the above-entitled action certified a class of individuals who purchased Long-Term Care Insurance Policies from CalPERS with either automatic inflation protection benefits, lifetime benefits, or both. These policies were sold between 1995 and 2004. The lawsuit alleged that CalPERS breached the insurance contract between Plaintiffs and other individuals who purchased these policies when it raised premiums by 85%. This increase was announced by CalPERS in 2013 and implemented in 2015 and 2016.
After a Phase I trial occurred in this case, the Court ruled that Class Members who purchased LTC Policies that had only lifetime benefits, but not automatic inflation protection benefits did not have a claim against CalPERS and those claims were dismissed. Plaintiffs then appealed the Court's order. Before the Court of Appeal could decide the matter, the parties agreed to the Class Action Settlement described herein.
Under the terms of the Settlement, Class Members who had their claims dismissed by the trial court will receive a cash payment that is based on whether they are a Current Policyholder or a Lapsed Policyholder. Current Policyholders are those who are currently paying premiums to CalPERS for their policy or are currently on-claim. Lapsed Policyholders are those who do not have an active policy with CalPERS and are not paying premiums because their policy lapsed.
Additional information about the settlement can be found by clicking on the FAQs tab above.
Important Dates
- Deadline to Dispute Current vs. Lapsed Policyholder Status: June 10, 2025
- Deadline to Object to Settlement:June 20, 2025
- Final Approval Hearing: July 24, 2025, at 1:30pm
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