9 Lessons From John Hancock’s $26M LTCI Settlement
August 31, 2022 by Allison Bell
To make up for early cancellation of benefits payments for 156 holders of New York State Partnership for Long Term Care policies, John Hancock agreed last week to pay a total of $26.3 million.
The settlement includes a $21.6 million in extra benefits to policyholders and beneficiaries, a $2.5 million penalty to the New York State Department of Financial Services, and a $2.2 million payment to the New York state Medicaid program.
When the holders of those policies used less than the full daily benefit amount on a given day, John Hancock failed to roll the unused amount of benefits forward, as described by the policy.