The Connecticut Insurance Department has negotiated a consent order with a group of 3 health carriers.
Connecticut officials say John Alden Life Insurance Company, Time Insurance Company and Union Security Insurance Company, units of Assurant Inc., New York, wrongly denied some claims based on the alleged existence of pre-existing conditions.
The companies also waited too long to investigate appeals involving denials based on pre-existing condition allegations, officials say.
Connecticut is requiring the Assurant units to pay restitution to the affected policyholders that the department has discovered through a 6-month investigation, and it is requiring the companies to pay restitution to affected policyholders who may be located through an external compliance audit.