The Humana Insurance Company has reached a regulatory settlement following a multistate market conduct investigation led by Missouri insurance regulators in collaboration with regulators from Mississippi and Wisconsin.
Under the settlement, Humana agreed to pay $1.8 million in fines to be divided among 10 states and to establish a $2.7 million consumer restitution pool.
The multistate market conduct investigation of the company began in 2012. The investigation was based on a referral of a single complaint that was filed by a small employer with the Missouri department’s consumer affairs division. According to Missouri regulators, the investigation found that Humana was requiring some employers that purchased small group medical insurance also to purchase a group life insurance product.
Under the settlement, Humana agreed to make business reforms to include notifying employers and insurance agents that the additional purchase of life insurance was not required. Humana also agreed to set up a $2.7 million restitution pool to provide refunds for employers that were required to purchase the group life product.