Independence Holding Company (IHC) says it has collected about $5.6 million in arbitration award payments from a benefit plan administration company.
The Stamford, Connecticut-based company says it will include the payments in its earnings for the third quarter. The third quarter ends Sept. 30.
IHC is the parent of three insurance companies, including Standard Security Life Insurance Company of New York and Madison National Life Insurance Company.
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FCE Benefit Administrators Inc., a San Mateo, California-based benefit plan administrator, was using coverage from Standard Security Life and Madison National Life to offer employee benefits for Chimes District of Columbia Inc., a nonprofit organization that helped people with disabilities get janitorial and maintenance services work.
FCE has contended that its compensation for administering the plan was at or below the regular market rate, but federal regulators expressed concerns about plan provider compensation.