PA Leads Multi-State Settlement Against Bankers Life and Casualty
HARRISBURG, Pa., Nov. 20, 2012
HARRISBURG, Pa., Nov. 20, 2012 /PRNewswire-USNewswire/ --The Pennsylvania
Insurance Department has announced the conclusion of a multi-state settlement
agreement on the re-examination of Bankers Life and Casualty Company. The
state will receive a share of the $3.2 million penalty levied against the
"Consumer protection and ensuring insurance company compliance is a
regulator's primary responsibility," Insurance Commissioner Michael Consedine
said. "Our re-examination determined that Bankers failed to comply with a
number of recommendations from a prior exam report."
Bankers Life and Casualty Company, based in Illinois, was re-examined as a
follow-up to a 2007 regulatory review. The review revealed concerns the
company failed to sufficiently check changes to applications, inappropriately
denied maximum benefit claims and failed to conduct timely claims
investigations and claims settlements. These issues of non-compliance related
to the annuities, long-term care and life insurance lines of business.
Under the settlement, Bankers Life will pay $3,200,000 to be shared among the
states that participated in the settlement. In addition to Pennsylvania, other
lead states conducting the regulatory review included Illinois, Indiana,
Florida and Texas.
A copy of the settlement agreement is available at www.insurance.pa.gov.
Media contact: Rosanne Placey or Melissa Fox, 717-787-3289
SOURCE Pennsylvania Insurance Department
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