Washington state insurance regulators are punishing a large insurer for problems with files.
The regulators have imposed a $25,000 fine on Symetra Life Insurance Company and 2 sister companies in connection with allegations that the company made errors such as mixing up the sister companies’ stationery and failing to perform quality checks after scanning documents, according to a copy of the consent order.
In other cases, Symetra and its sister companies committed errors such as failing to investigate claims within 30 days, failing to document that variable annuity purchasers had received notifications of their right to rescind the contracts, and failing to save complete copies of the policy illustrations used in the sale of the policies, officials allege.
Symetra has consented to the fine and the order of the entry to resolve the matter, officials say.
Washington state regulators discovered the alleged errors during a market conduct examination of records collected from July 2002 to June 2003, when Symetra was still part of Safeco Corp., Seattle.
“Our goal is maintain the highest-quality recordkeeping and administrative procedures,” Symetra spokesman Colin Johnson says.
Symetra is taking regulators’ concerns seriously, and it has taken action to ensure that no consumers have been harmed financially by any of the issues that regulators have brought to its attention, Johnson says.