On August 6, 2013, a class action lawsuit was filed in an effort to obtain relief for approximately 150,000 individuals who purchased certain Long Term Care Insurance policies through CalPERS and were then subjected to premium hikes of approximately 85%. The complaint alleges that CalPERS promised its policy holders that the premiums for its LTC policies were fixed for life and would never rise. The complaint further alleges that at the time CalPERS made these promises, it had underpriced its policies and knew, or should have known, that premiums were certain to rise in the future. The complaint asserts causes of action for Breach of Contract, Breach of the Implied Covenant of Good Faith and Fair Dealing, Rescission, and Declaratory and Injunctive Relief.
To read the complaint, click here.
To read the reply from the CALPers legal team, click here.
To visit the website containing the latest information on this lawsuit and to access all of the relevant court documents for the case, click here.