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Federal Court Permits Long Term Care Class Action Against Continental Casualty Co. to Proceed

On March 16, 2015,  U.S. District Court Judge Mark L. Wolf refused to dismiss a putative class action brought by Goldenberg Schneider on behalf of policyholders against Continental Casualty Co. (“Continental Casualty”).  The plaintiff in that case seeks to represent a class of elderly individuals who purchased long term care insurance policies containing an Alternate Plan of Care Benefit (“APC”) from Continental Casualty and who sought coverage pursuant to the APC for stays at alternate (non-nursing home) facilities, but who had their claims wrongfully denied.  The complaint also seeks injunctive relief on behalf of policyholders nationwide to stop Defendant’s wrongful conduct.  The complaint alleges that Continental Casualty wrongfully refuses APC coverage requests unless there are no traditional nursing homes in the area of the insured, a prerequisite that lacks any basis in the actual text of the APC or underlying long term care policies.  When Continental Casualty moved to dismiss the action, Judge Wolf denied the request, finding that the plaintiff had “alleged a plausible claim that defendant failed to act in good faith in denying [her] request for insurance coverage relating to her need to reside in an ‘assisted living’ facility.”  The case is currently pending before Judge Wolf in the United District Court for the District of Massachusetts.

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