Conseco To Meet With Florida Regulators

Conseco says that, because of an administrative problem, some of its UL policyholders paid inadequate premiums, or no premiums, because they never received notices that additional premiums were due.

No policyholder received reduced benefits because of the error, the company says.

About 5,000 Conseco policyholders in Florida were notified in letters the company sent Oct. 27, 2008, that there would be an increase in their monthly cost of insurance rates and expense charges, according to Florida insurance regulators.

Conseco says it has brought the issue to the attention of regulators in a number of states. It recently announced a 90-day nationwide moratorium on further action on the policies, sold under its Lifetrend brand, pending discussions with regulators.

Individuals purporting to own Conseco UL policies have posted messages on consumer Web sites reporting that they recently have received bills for thousands of dollars in UL policy premiums.