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Insurance Department Fines Assurant Health Subsidiaries $395,000 For Violations

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Connecticut insurance regulators fined subsidiaries of Assurant Health a combined $395,000 for a series of violations that include not paying health insurance claims on time and having agents that aren't properly licensed.

Time Insurance Company and John Alden Life Insurance Companies were fined $318,000 and $77,000 respectively. Both are subsidiaries of Assurant Health of Milwaukee, Wisc.

Both companies signed consent orders in December agreeing to remedy the problems and to pay fines. The Connecticut Insurance Department announced the fines today. The Insurance Department conducted a review from June 2009 to April 2010 of some of the companies' individual and group medical policies. Specifically, it was policies that are used by consumers for more than six months, unlike shorter-term health plans.

Assurant Health spokeswoman Pam Flores said, "Assurant Health is pleased to have reached this settlement with the state of Connecticut Insurance Department. We appreciate the opportunity to work with the department. Providing our customers with quality health  insurance coverage as well as the highest level of customer services are our utmost priorities."

The companies violations include: not having the proper insurance licenses; failure to pay claims within 45 days; failure to pay claims without a conducting a reasonable investigation; failure to pay claims as required by mandated benefits in Connecticut; insufficient documentation for regulators to review.

"Our comprehensive reviews turned up infractions in a number of areas -- from unlicensed agents to unjustified denials of claims," said Acting Insurance Commissioner Barbara C. Spear. "Policyholders expect a level and standard of service, and in many instances, did not receive it. It is essential that insurance companies that want to do business in Connecticut strictly adhere to state laws and mandates. As a regulatory agency, we protect the consumer by ensuring that companies comply."

The investigation by the state department's Market Conduct division stems from a 2008 review of short-term health insurance plans -- lasting less than six months -- sold by the two companies. The department found violations with those plans. At the time, both companies agreed to pay a total of $2.1 million in fines to the state and $920,000 to policyholders as restitution.


My wife and two children and I live in the state of Illinois. Our current health insurance plan is a Choice Plan that is provided by Wise Health Insurance. The plan itself is a consumer driven health care plan.

Many of the insurance companies not able to keep their wording while providing the Insurance claim against any causality, mostly people not aware of the policies so they do not know that what to do, so companies should provide all the information about the product and services, always keep the words, what they are promising and what they are providing.

Public Liability Insurance Torrance

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Matthew Sturdevant is the insurance reporter at The Hartford Courant. He grew up in East Aurora, N.Y., a small village near Buffalo. He started his journalism career in 1999 ... read more

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