Connecticut insurance regulators have announced a settlement that will resolve an investigation of 2 sister companies that sell temporary medical insurance.
John Alden Life Insurance Company and Time Insurance Company, units of Assurant Health, Milwaukee, have accepted a consent agreement that calls for them to pay about $920,000 in restitution to insureds and $2.1 million in monetary penalties, according to the Connecticut Insurance Department.
The units also have agreed to tell the department about ways they will improve their operations in the future.
The Connecticut department says the units may have denied some short-term health insurance claims improperly and improperly rescinded some short-term health policies between 2000 and 2007.
The units “neither admit nor concede any actual or potential violation, fault, wrongdoing, or liability in connection with the department’s allegations,” Connecticut department officials note in a statement.
“The insurers have cooperated fully with the insurance department’s investigation and examination,” officials report.
Assurant Health, a subsidiary of Assurant Inc., New York, has put out a statement welcoming the resolution of the Connecticut investigation.
“Assurant Health is in the process of actively implementing a variety of health insurance consumer initiatives, including playing a leadership role in America’s Health Insurance Plans Guaranteed Access Proposal and establishing a health insurance Consumer Clarity Panel comprised of national consumer advocates,” the company says in the statement.