American Heritage and Mutual of Omaha, along with an insurance administrator, have reached a $15 million settlement regarding a lawsuit over the sale of long-term insurance policies.

The decision will affect hundreds of Missouri residents who bought policies from American Heritage Life Insurance Co. and Florida-based administrator Wakely and Associates, which helped design the policies, according to the Kansas City Star. The policies were co-insured by Mutual of Omaha.

American Heritage, Mutual of Omaha and Wakely were sued in 2002 by two Macon, Mo., residents who alleged while setting initial premiums very low, the companies failed to disclose that it planned steep rate increases.

The two insurers will pay $11 million in insurance and benefits to people a court rules were affected by the actions, while Wakely will pay $4 million in cash. All three companies have denied any wrongdoing, according to the report.

The lawyer for the plaintiffs, Gregory Leyh, said the settlement affects 1,669 Missouri residents. Leyh told the Star that the settlement “provides unprecedented long-term benefits to those who would otherwise receive nothing, or be forced to pay exorbitant rate increases just to keep their policies in force.”

Under the settlement with the two insurers, current policyholders can continue with their policies or receive long-term benefits for the rest of their lives equal to the total premiums they have paid over the life of the policy, Leyh told the paper.