October, 2005 – This insurance fraud case involved the settlement of a class action on behalf of an insurance company’s policyholders. Specifically, the policyholders owned health insurance with the defendant insurance company and the company engaged in “tiering” the policyholders in different categories of risk. This caused the premiums for healthy policyholders to be cheap while the premiums for sick policyholders to be much higher. This practice violates the very purpose of the benefits of insurance, which is to spread out the risk over all categories of policyholders. This was a major settlement on behalf of this class of consumers.
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