$11M Class Action Settlement Against Fortis

A Fulton County State Court Judge has given preliminary approval for the settlement of a class action lawsuit against Fortis Benefits Insurance Company (FBIC) and others.

The case alleges that FBIC improperly raised health insurance premiums based on length of time the policy was in force and medical condition of policyholders. Notice of the settlement with an opportunity to participate in the $11 million settlement will be mailed to more than 5,700 Georgians by June 14th who purchased an Upper Midwest Employer Group Individual Medical Plan (UMEG IMP) issued by Fortis Benefits Insurance Company from 1996 through July 2008.

Daniel S. Kahn, DC, brought suit in 2004 claiming that certain Georgia laws and regulations imposed limits on the amount of renewal premiums that could be charged for small group health insurance that was marketed and sold to Georgia small business owners and individuals. The trial court certified the case as a class action lawsuit in 2008 and a settlement agreement was reached after the Supreme Court of Georgia denied review of the Court of Appeals decision to affirm a Fulton County trial court’s class certification order.

The case is reported as Fortis Ins. Co. v. Kahn, 299 Ga.App. 319, 683 S.E.2d 4 (2009), cert. denied (2010).