Crown Life Reaches U.S. Class Action Settlement Agreement.REGINA, Saskatchewan--(BUSINESS WIRE)--Nov. 14, 1996--Crown Life Insurance Co. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME CLA CLA, n.pr See acid, conjugated linoleic. . ) today announced that it has reached a settlement agreement involving a class of whole life participating policyowners who were sold their policies on a "vanishing premium" basis in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. since the early 1980s. The terms and conditions of the proposed settlement have received preliminary approval from a Federal Court judge in Houston, Texas. The settlement is aimed at avoiding the inevitable uncertainty, costs and delay of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . As many as 100 life insurance companies in the U.S. are engaged in similar litigation. Crown Life believes that this settlement compares favorably with those recently reported by other companies in the industry. Details of the proposed settlement will be mailed to eligible participating policyowners within the next two weeks. "The settlement will resolve the issue in a way that is in the best interests of all Crown Life policyowners," said President and Chief Executive Officer, Brian A. Johnson. "The Company acted appropriately, responsibly and in accordance with accepted industry practices in relation to these policies. We believe that resolving this issue will enable us to focus on our business imperatives of sales growth and customer service." The settlement provides valuable benefits for class members who have been disappointed in the performance of their policies. Policyowners in the class will be given the opportunity to take advantage of a number of attractive benefits. Alternatively, they may participate in a claim resolution process. Crown Life estimates that the cost of the settlement will be US$27 million. The cost will be charged directly to surplus and will not affect 1996 net income. Lead counsel for the plaintiffs, who number approximately 22,000, is Richard T. Phillips of Batesville, Mississippi. Founded in 1900, Crown Life ranks among the top five per cent of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life insurance companies. The Company provides quality financial products and services across North America and in selected international markets. Crown Life offers life insurance, health insurance and pension programs to individuals and groups, and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. services to other insurance companies. Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Standard & Poor's, Dominion Bond Rating Service Dominion Bond Rating Service is a credit rating agency based in Toronto, Ontario. Founded in 1976, it is one of the largest credit rating agencies in Canada. It is one of five Nationally Recognized Statistical Rating Organizations in the United States, though significantly smaller and TRAC TRAC - Text Reckoning And Compiling Insurance Services have recently raised their rating for Crown Life in an environment where very few life insurers in North America have received upgrades. Crown Life's net income was Cdn$47 million in 1995 and Cdn$32 million in the first nine months of 1996. CONTACT: Crown Life Insurance Company Alan M. Rowe, 306/ 751-6770 or Crown Life Insurance Company Don Savaria, 306/ 751-6153 1-800-827-6965 |
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