Report: #1123794

Complaint Review: Genworth Life

  • Submitted: Sat, February 15, 2014
  • Updated: Fri, April 25, 2014
  • Reported By: Rudi — Boulder City Nevada
  • Genworth Life
    P.O.Box 40005
    Lynchburg, Virginia

Genworth Life Here are a few facts about Genworth and its management and its compensation.Martin P. Klein, CFO - $3.1 millionKevin D. Schneider, Exec. VP - $2.5 millionPatrick D. Kelleher, Exec. VP - $2.3 millionLeon E. Roday, Sr. VP - $1.6 millionTotal execut abusive insurance rate increase Lynchburg Virginia

*Consumer Comment: Genworth long term care rate increases

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 My long term care insurance company is increasing my rates a total of 130% over 4 years, and the State of Nevada has approved this increase. Genworth Life of Lynchburg, VA has/is increasing my rates as follows: 2013: from $212.87 to $251.18 (18% increase) 2014: rate increased to $334.08 (33% increase) 2015: rated increased to $ 414.45 (24% increase) 2016: rate increased to $494.83 (19% increase) Why the increases? Greed and mismanagement. Long term care is not paid for by Medicare. It is an insurance policy that people pay for years in advance of needing benefits. People take these insurance policies in order to provide for their own nursing home care if they should ever need it. But when you're on a fixed income and 80 years old, how are you suddenly going to pay $500 a month for long term care insurance? Especially when the contract you signed was for about $200 a month AND you were working at the time? Genworth miscalculated how long people were going to live, how many would drop out of their insurance policy (die), how much health care costs would increase, and how little their own investments would bring in. But they are determined to keep up their profits. So they are sticking it to retirees in their 70's, 80's and 90's to keep up the fat salaries for their executives. Here are a few facts about Genworth and its management and its compensation. Martin P. Klein, CFO - $3.1 million Kevin D. Schneider, Exec. VP - $2.5 million Patrick D. Kelleher, Exec. VP - $2.3 million Leon E. Roday, Sr. VP - $1.6 million Total executive compensation in 2012 - $16.63 million, up 53.28% in a year. (Source: Morningstar Financial) In addition, M.D. Frazer, C.E.O., was removed from his position because of incompetence and heavy losses in the mortgage division. He received $2.25 million as a parting gift. His total compensation was $6.69 million, including the separation payment. Frazer was rated the WORST CEO in American business. (Source: Bloomberg Financial) Now the small insurance holders such as I are left holding the bag for greedy management people. The company was subject of a class action suit in California for removing $226 million from the reserve fund as an excuse to raise premiums. The plaintiff stated that "had Genworth simply not reduced its aggregate reserves by $226.2 million to increase its own profitability, it would have had aggregate reserves far more than the projected $555 million it seeks to collect in premium increases over the next 40 years." The suit was dismissed because of a jurisdictional technicality. (Peisner vs. Genworth Life Insurance Co. I am sending this out because it is another outrageous act by a big company that is determined to make its obscene profits, and pay its obscene management salaries, at the expense of retirees. That the State of Nevada has approved these rate increases is also outrageous, but Genworth has been raising these rates all over the country. I just want people to know. Rudi K (((REDACTED)))
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#1 Consumer Comment

Genworth long term care rate increases

AUTHOR: johnamendall - ()

 I second and agree with the report from Nevada about Genworth rate increases and executive salaries. I live in Georgia; I have a long term care policy contracted in 2000. The type of plan I have is a fixed benefit so this means Genworth at the time I bought the policy understood what the possible cost of benefits would be to it. The insurance agent told me there was a loop hole that the rates could increase, but it had never happened. As I understand it, to get a rate increase requires Genworth to claim it is financially in trouble. The problem with this loophole is: 1) it is a one way street -- if the company becomes profitable after a rate increases, the rate increases do not reverse; and secondly, the executive pay increases are difficult to explain if the company is under hardship. My rates have increased approximately 50% -- while my benefit which I contracted has not increased a penny. Clearly, it is a problem for the state insurance commissions and also an ethical issue for Genworth. Because my benefits have not increased a penny, it seems difficult for me to see how my rates can be justified in increasing fifty percent. It is outrageous; it may be legal, but it is certainly not ethical or justifiable. I would like to see reports on what insurance commissioners have received from Genworth - in terms of campaign contributions, gifts, and other rewards passing to the commissioners from Genworth executives.

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