John Hancock Life Insurance Company has agreed to pay more than $40,000 to settle allegations that it provided erroneous information to consumers who inquired about their coverage under certain long term care policies.
The Massachusetts attorney general had alleged that a technical error with John Hancock’s policy production system caused it to send incorrect forms to policyholders, misinforming them of coverage levels for assisted living residences.
“Consumers must receive accurate information so that they can avoid being trapped in a policy that doesn’t best provide for their needs,” Attorney General Martha Coakley said. “We are pleased that John Hancock has agreed to provide full coverage and restitution to the consumers who were misinformed.”
The forms provided by John Hancock allegedly included coverage details indicating that the company would provide an assisted living residence daily benefit equal to 100 percent of the policyholder’s home health care daily benefit. Under the terms of the consumers’ actual policies, John Hancock in fact only provided an 80 percent assisted living residence daily benefit.