Prudential Accused of Invalid Rate Hikes in Long-Term Care Plans

A former Tufts University employee filed a proposed class action against Prudential Life Insurance Co. in Massachusetts federal court, claiming the insurer raised premiums and misled customers about the terms of their group long-term insurance policies.

The lawsuit, filed Thursday in the U.S. District Court for the District of Massachusetts, accuses Prudential of selling long-term care insurance plans while telling plan participants their premiums “could only be increased if approved by the state of issuance’s ‘Commissioner of Insurance.’” Prudential did this even though certain states, including Massachusetts, don’t give their insurance commissioners rate approval authority over these policies, the lawsuit ...