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Home > BizTimes Daily > Archives > September 3, 2008
Wisconsin will get share of insurance settlement
Published September 3, 2008 - BizTimes Daily
Wisconsin Insurance Commissioner Sean Dilweg announced that Wisconsin will receive nearly $400,000 in civil penalties as part of a $20 million dollar regulatory settlement agreement between 29 jurisdictions and Mega Life and Health Insurance Company, Mid-West National Life Insurance Company and Chesapeake Life Insurance Company, subsidiaries of HealthMarkets, Inc., now known as UICI.
"This multi-state settlement addresses allegations of serious violations of consumer protection laws," Dilweg said. "It's an excellent example of how state insurance regulators can effectively work together and address market practices occurring in multiple states."
The regulatory settlement follows a three-year, multi-state examination led by the states of Washington and Alaska with assistance from the National Association of Insurance Commissioners (NAIC). The examination report alleged multiple problems involving consumer disclosure, oversight and training of agents, claims handling and complaint-handling practices. The subsidiaries of HealthMarkets face up to $10 million in additional penalties if they fail to meet performance standards outlined in the settlement.
According to the terms of the settlement, the companies must implement an outreach program to victims. The examination covers a five-year period ending Dec. 31, 2005, and stemmed from the volume, scope and nature of complaints made against the companies by consumers in many states, including Wisconsin.
Wisconsin consumers with questions concerning insurance are encouraged to call the OCI complaints line, 1-800-236-8517.
