Genworth Long Term Care insurance was created as a means to provide senior citizens with affordable health care benefits while they remain in their homes. In order to receive these benefits, however, the policyholder must partake in a specific class action lawsuit against the company. At the time of enrollment, each individual senior citizen is required to complete a form acknowledging that he or she understands the nature of the lawsuit and will attend the class action lawsuit against Genworth. This information is forwarded to attorneys who are then assigned by the company to manage the claims process.
The purpose of this class action lawsuit is to force Genworth to allow senior citizens to purchase the insurance from an independent broker or agent. Senior citizens are then required to participate in the lawsuit in order to present their claim for payment. While the process has been widely criticized by senior citizens, who believe that they are being forced to partake in a scheme designed to benefit the insurance company at the expense of their own interests, Genworth continues to deny such claims. There are, however, issues with the insurance itself that require immediate attention. As we will see, these problems are endemic within the Genworth Long Term Care Insurance program itself.
One of the most fundamental defects of Genworth’s LTCi plan is the claims process. Under the terms of the plan, Genworth has control over the entire compensation process. If a participant elects not to participate in the plan, he or she forfeits any and all vested rights to future compensation payments. While this does provide senior citizens with a means of protecting their own interests in the event that the company is insolvent, the control inherent in the distribution of LTCI compensation provides no assurance that the plan will be enforced in the event that the corporation is unable to continue operations.
Another fundamental defect of Genworth LTCi is the nature of the compensation plan itself. The compensation plan is set up as a trust. This means that senior citizens who elect to participate in the Genworth LTCi are left in total control of the entire process. This includes, in many instances, the power to determine how the money will be invested and used. Without the ability to make these decisions, senior citizens are subject to the whims of the insurance company, which may not be interested in their best interests.
The next most fundamental problem with Genworth’s Long Term Care Insurance is the means by which compensation is disbursed. Under the terms of the policy, there is no actual investment of capital. Instead, the insurance company makes its profits by paying benefits to senior citizens on an “as is” basis. In other words, even when a claim for compensation has been paid in full, the insurance company makes no effort to investigate or resolve the claims. This constitutes a clear abuse of the policy, and an illegal act by Genworth Long Term Care Insurance Company.
As you can see from the above discussion, Genworth’s long term care insurance policy contains several very troubling defects. None of these defects would bar Genworth LTCi from standing up in a class action lawsuit against it. If Genworth wishes to be permitted to continue this conduct, then it should be compelled to establish a policy that authorizes and requires senior citizens to make payments for the cost of their nursing home care on an “as is” basis. Such a policy should also require the insurance company to investigate and settle any claims made against it on a “no win no fee” basis.