A federal trial in Los Angeles next week will test an increasing concern for Americans: How much leeway do their life insurers have when raising the price on old policies?
In 2004, investors teamed with Praises of Zion Baptist Church in south Los Angeles to take out policies for 2,400 churchgoers in the area, most of whom couldn't otherwise afford them. The investors receive $225,000 of each $275,000 death benefit, while church-related social-service programs and beneficiaries of the insured mostly African-American congregants split the remaining $50,000.
Read Full Article »