Class Action Resolved — But Genworth Still Drastically Hiking Premiums
If you or a loved one owns a long-term care insurance policy from Genworth Life Insurance Company or Genworth Life Insurance Company of New York, you probably already have received a letter, a refund — or both — as part of a major federal class action settlement. The case, Haney, et al. v. Genworth, alleged that Genworth failed to disclose critical information about planned premium increases while pressuring policyholders to make irreversible coverage decisions.
What the Lawsuit Was About
Filed in our very own United States District Court for the Eastern District of Virginia and approved on February 15, 2023, the Haney case centered on specific long-term care policy types:
- Choice 2
- Choice 2.1
- California CADE
- California Reprice
- California Unbundled
Plaintiffs alleged that Genworth sent premium increase notices and “election packages” without revealing internal projections that showed further sharp premium hikes were not just possible — they were virtually certain. Without that information, policyholders were making major decisions about their coverage in the dark.
What the Settlement Offered
Class members received notices describing three main options:
- A cash payment — in some cases exceeding $50,000 — while keeping their full policy intact.
- A partial refund combined with a smaller paid-up policy.
- Or the ability to continue their existing policy unchanged, with the benefit of now having more complete disclosures about expected future increases.
Importantly, the lawsuit did not challenge Genworth’s legal right to raise premiums, which they are currently doing again in a BIG way. The lawsuit challenged the way the company withheld key information from consumers while inducing them to make permanent coverage changes. Genworth denied wrongdoing but agreed to settle to avoid ongoing litigation.
Related Legal Background
This wasn’t Genworth’s first major settlement involving its long-term care insurance business. In 2016, the company paid $219 million to resolve a separate securities fraud class action brought by investors, alleging Genworth misrepresented the profitability and financial condition of its long-term care operations. That case didn’t involve policyholders directly — but it reflects the long history of instability and opacity in this corner of the insurance market.
Wondering Who Owns Genworth?
Genworth wasn’t always a stand-alone company. It was originally part of General Electric (GE) and operated as GE’s insurance arm until it was spun off in 2004 as a separate publicly traded entity. In 2016, Genworth agreed to be acquired by China Oceanwide Holdings Group, a privately held Chinese conglomerate. The proposed $2.7 billion deal raised concerns among U.S. regulators due to national security and data privacy implications, given Genworth’s access to sensitive financial and health-related information.
After nearly five years of delays and multiple deadline extensions, the deal was officially terminated in April 2021. Genworth cited the inability to obtain all necessary regulatory approvals as the reason.
Today, Genworth remains an independent, U.S.-based, publicly traded company listed on the New York Stock Exchange under the ticker symbol GNW. It is no longer affiliated with GE, and the Chinese acquisition attempt is definitively off the table.
What Policyholders Should Do Now
If you own a Genworth long-term care policy:
• Check your records for any notices, election letters, or settlement packets you may have received over the past two years.
• Review your options carefully — especially if you’ve been presented with a decision involving benefit reductions, policy changes, or buyout offers.
• Do not make any changes without understanding the long-term impact.
• Contact our office and bring your letter — if you were part of the class, or if you’re just getting a premium increase notice (see next section), we can help you determine the best coverage options for you going forward.
Still Ahead: A 78 Percent Premium Increase
Even though this latest class action was resolved, Genworth continues to implement steep rate hikes. In recent letters, despite misleading information that may appear in your Genworth portal online, Genworth has sent letters to many policyholders — including those who kept full coverage and received settlement payments — that they will face cumulative premium increases of up to 78 percent over the next five years.
If you’ve received such a notice, you’re not alone. Staying informed — and having your policy reviewed by a professional such as us — is more important than ever. We’re here to help you evaluate your options and plan for the future with confidence.
