John Hancock Settles Suits for $19.5 Million

John Hancock Financial Services Inc. said it would have $19.5 million in costs to settle litigation alleging the insurer overcharged customers who paid premiums in installments.

The Boston-based company said about 1.5 million of its customers are eligible to participate in the settlement, which covers John Hancock’s liability in 21 class-action lawsuits filed against a number of life insurance companies.

“If eligible under the agreement, these customers may receive a settlement death benefit of $800, $1,100 or $1,400, depending on their specific circumstances,” the company said.

John Hancock shares rose 50 cents to $31 on the NYSE.