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Friday, March 29, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Of Cancer Patients Sues Insurer

KANSAS CITY, KAN. (CN) - American Fidelity Assurance cheats policyholders by promising, but refusing, to pay "actual charges" of cancer treatments, a class action claims in Federal Court.

Plaintiffs say they bought "cancer expense policies" from American Fidelity. At all times, plaintiffs say, they interpreted the term "actual charges" to mean "actual charges."

However, "In 1994, a few years after plaintiff purchased the policy, AFA secretly, fraudulently and unlawfully changed its interpretation of 'actual charges' to mean 70% of the amount of a provider's bill or invoice for covered treatment and secretly began paying 'actual charges' benefits in accordance with that new interpretation without its insureds' knowledge or consent."

And they claim that American Fidelity "knowingly, intentionally, fraudulently and in bad faith underpaid the decedent's and plaintiff's claims for benefits under the policy."

Plaintiffs demand punitive damages. They are represented by Matthew Geiger with Gaddy Geiger & Brown of Kansas City, Mo.

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