Conseco Inc. has agreed to postpone further action on its recent demand for additional premium payments from some holders of universal life insurance policies.
The suspension was in response to an Iowa Division of Insurance order directing Conseco Life Insurance Company, a subsidiary of Conseco, Carmel, Ind., to stop demanding the payments.
Conseco disputes the order to stop demanding additional premiums but has agreed to stay its demands to give the state’s regulators time to investigate the matter, according to papers filed by the Iowa division. The stay would apply nationwide until March 31, 2009, according to the division.
The division had issued a cease-and-desist order against Conseco earlier this month after receiving complaints from some residents that the company was demanding extra payments on Conseco Life trend UL policies they had purchased.
Some agents who had sold the policies also complained about the demand, the Iowa division said at the time.