Commerce Department Takes Leading Role in $41 Million Nationwide Settlement Agreement
|Targeted News Service|
"This AIG company sold health insurance group policies to individual consumers through misrepresentation and false marketing practices," said Commissioner
The investigation of the company began on
Ohio Department of Insurance in their consent order that the Direct Marketing Business Unit marketed and sold non-employer group policies for which premium rates and the classification of risks had not received regulatory approval.
Further, it was alleged that in certain instances the coverage under policies that were filed, approved, and issued used as blanket accident/sickness policies for groups were improperly marketed to individuals. This practice constitutes a violation of law in various states and the company was ordered to cease marketing coverage under policies that were filed and approved as blanket accident/sickness policies to individuals.
"This year the
Currently, 41 states including
NUFIC has agreed to draft and submit a Corrective Action Plan that address the issues raised in the Multistate Examination. The Corrective Action Plan will address issues pertaining to regulatory filing, handling of consumer complaints, and the marketing of certain products and services. The Lead States may impose up to
If consumers have any insurance related questions or would like to report suspicious activity, they are encouraged to contact the
TNS hc11-121127-4118208 StaffFurigay
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