Kansas City Life Insurance Company
| Company type | Public |
|---|---|
| Industry | Insurance |
| Founded | 1895 |
| Founder | Major William Warner, J.H. North, S.E. Rumble |
| Headquarters | Kansas City , United States |
Area served | 48 states and the District of Columbia |
| Products | Individual life insurance, annuity products, group insurance, variable life insurance, variable annuities, mutual funds |
Number of employees | 1400 (agents) |
Kansas City Life Insurance Company operates as a publicly traded insurance organization, established in 1895 and situated in Kansas City, Missouri. Its network of approximately 1,400 agents markets individual life insurance, annuity products, and group insurance in 48 states plus the District of Columbia. Through its subsidiary, Sunset Financial Services, it also provides investment offerings such as variable life insurance, variable annuities, and mutual funds.
History
The firm was initially launched in 1895 under the name Bankers Life Association by Major William Warner (President), J.H. North (Vice President), and S.E. Rumble (Secretary). Operations commenced in the Scheidley Building located at Ninth and Main Street. As the company extended its reach into Colorado and Minnesota, it relocated its headquarters to the Navajo Building. In 1900, the company adopted its current name, Kansas City Life Insurance Company.
Litigation
In June 2019, following a $34 million verdict against State Farm for improper charges in 2018, law firms Stueve Siegel Hanson LLP and Miller Schirger, LLC initiated a class-action lawsuit targeting Kansas City Life Insurance Co., accusing it of "systematically overcharging" customers. The complaint asserted that these unauthorized fees threatened to make policies unaffordable, potentially depriving policyholders of essential life coverage.
Later that year, in November 2019, policyholder J. Gregory Sheldon filed a class-action lawsuit alleging that Kansas City Life imposed fees exceeding the limits specified in his Flexible Premium Variable Life Insurance Contract Nonparticipating policy purchased in 2000. This policy features both a death benefit and an interest-bearing cash value element.
In May 2020, a Missouri Federal Court determined that Kansas City Life improperly denied both short-term and long-term disability benefits to a certified nurse anesthetist who had been terminated due to fentanyl addiction. The court ruled the insurer’s denial was unjustified.
On September 21, 2023, a jury in Jackson County awarded $9.5 million (later reduced to $4.1 million due to overlapping damages) to a class of 535 policyholders involved in Sheldon v. Kansas City Life Insurance Company. These plaintiffs represented current and former owners of Century II Variable Universal Life policies in Missouri. The suit claimed three distinct types of overcharging violations.
This decision follows earlier favorable rulings for policyholders from May 2023 and December 2022. Patrick Stueve, lead attorney for the plaintiffs, highlighted that “three courts have determined Kansas City Life breached its contractual obligations resulting in over $35 million awarded,” with preparations ongoing for a fourth trial anticipated in mid-2024.