John Hancock Settles Discrimination Class Action for $24.4 Million

Life insurance giant John Hancock has agreed to settle a class action lawsuit alleging that it racially discriminated against African Americans when selling its polices prior to 1959. Specifically, the suit alleged that John Hancock sold lower grade policies, rather than its full range of products to African Americans.

The settlement is for a reported $24.4 million. Estimates suggest that the size of the class could reach the thousands, based on polices dating back to the 1930s. Under the terms of the settlement, African Americans who purchased, owned, were insured by or were beneficiaries of industrial weekly life insurance policies or monthly debit policies issued by John Hancock prior to 1959 would be entitled to $1,200 per policy.

The suit was filed in 2003 by Merle Norflet of Connecticut on behalf of her mother.

APRIL-08-09: John Hancock Life Insurance Co. settles bias suit [BOSTON HERALD: JOHN HANCOCK SETTLES BIAS CLASS ACTION]