OIR nets $466,000 settlement from Conseco insurers

TALLAHASSEE – The Office of Insurance Regulation has received $466,000 as Florida’s share of a multistate settlement agreement with Conseco Senior Health Insurance Co. and Bankers Life and Casualty Insurance Co. over allegedly inappropriate claims handling and marketing practices.

Both companies are subsidiaries of Conseco Inc.

The 39-state investigation of the two companies focused largely on their long-term care insurance  business.

Findings of the probe included unacceptable recording and investigation of complaints and claims not properly documented, not timely settled and paid.

Additionally, the marketing practices of Bankers Life did not fully comply with state regulations.

“Anytime companies engage in business practices that are detrimental to the best interests of Florida consumers, they must be held accountable,” said Insurance Commissioner Kevin McCarty said.

The states and companies agreed to a settlement on March 30 that outlined the specific business practices the companies needed to correct.

All affected consumers were paid their claims plus interest, totaling $1.4 million in Florida alone. The review looked at claims that had been denied from 2005 through 2007.

Florida, along with Illinois, Indiana, Pennsylvania and Texas, took the lead in coordinating and overseeing the investigation.

Conseco Senior has not written new business since 2003. Bankers Life is still licensed in Florida and has 42,000 customers.

The $466,000 was paid to the Florida Insurance Regulatory Trust Fund.
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APRIL 8, 2009 click to go home
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