CONSECO MUST PAY FOR THEIR APPARENT WRONGDOING TO CUSTOMERS
http://www.courant.com/business
" Bankers Life's Parent To Settle Multistate Probe
- By DIANE LEVICK |Courant Staff Writer
- May 8, 2008
Conseco Inc., parent of Bankers Life and Casualty, will pay at least $32.3 million in a 40-state settlement because subsidiaries improperly denied and delayed claims, misled consumers and sold annuities that weren't suitable for some senior citizens, regulators said Wednesday.
The settlement includes Connecticut, where the state's Insurance Department has received dozens of complaints about Bankers Life sales and marketing practices for such products as annuities and life insurance. Separately from the multistate probe, the department has been investigating several Bankers Life agents.
The settlement of the states' "market conduct examination," which involves Conseco Senior Health as well as Bankers Life, requires Conseco Inc. to pay a $2.3 million fine. The fine will be shared by the 40 states, and the company would have to pay an additional $10 million in fines if problems aren't corrected.
The company must pay at least $4 million of restitution to customers, and will also invest $26 million in system upgrades and improved claims handling.
The investigation found "a pattern of consumer harm" by the company in long-term care insurance, which pays for nursing home, and often, home care.
Under the settlement, Conseco Senior Health will automatically review 1,112 claims that were initially denied. The company will also send notices to another 18,000 policyholders nationwide regarding 49,000 claims that may have been partly denied or denied after an initial payment so consumers can request that those claims be reviewed.
"It is vital that long-term care insurers make prompt and appropriate payment of claims to consumers who are older and whose lives and well-being are dependent upon it," said Joel Ario, acting insurance commissioner in Pennsylvania, which led the investigation. "Conseco failed this test."
The settlement requires the company to contract with an experienced long-term care claims administrator to make sure claim payments are proper and timely. The investigation found that Bankers Life sold products to senior citizens "that were not necessarily in consumers' best interests," provided misleading information about such products as annuities, and failed to adequately supervise its sales staff, said Rosanne Placey, press secretary at the Pennsylvania Insurance Department.
The accord requires Bankers Life to enhance training of its sales force and change the threshold for disciplinary action so action can be taken against an agent even on a single complaint. The company must supervise all sales representatives and terminate them if they don't comply with marketing standards.
Bankers Life and Conseco Senior Health are also required to handle complaints completely and in a timely way and create a centralized complaint database.
Conseco reported serious issues in complaint and claims handling and blamed problems on "the challenge of integrating various computer systems," Pennsylvania's department said.
"Conseco is committed to meeting standards set forth in the forward-looking settlement to steadily improve our company," Conseco Chief Executive Jim Prieur said in a written statement. "We've been diligently working toward best-in-class service through the process improvement and enhancement program we implemented in 2007, and are already seeing meaningful results in claims and complaint handling."
Prieur said the examiners "did not find that Conseco engaged in a practice of improper claim denials." Pennsylvania regulators say the problem in most cases was delay of claim payments rather than outright denials, and that some claims were paid that shouldn't have been paid.
The $2.3 million fine may seem small to some consumers, but Placey said, "We thought it was very important to focus significant dollars [instead] on improving complaint and claims handling systems at the company so that this won't be happening again."
Conseco could wind up paying more than $4 million in restitution on claims if that's what it takes, Placey noted. The settlement covers claims filed from Jan. 1, 2005, through April 30, 2007."
"CONSECO HEALTH INSURANCE COMPANY" (surely this is associated with Conseco) given the address of the company)
General Information: Type of Entity: CL Status of TX License: Active NAIC Number: 78174 TDI Company Number: 12875 Company Type Code (Old / New): 02/22 FEIN: 341083130 Home City/State: Phoenix, AZ Origin: Foreign Date Incorporated/Organized: 10/01/1970 Date Licensed in Texas: 10/01/1976 Date License Cancelled: Company Status: Normal Operations Category: Life Class Code: Life & Health
Contact Information: Mailing Address: 11825 North Pennsylvania Street
Carmel IN 46032 Office Number: (317)817-4300 Toll Free Number: (800)541-2254 Fax Number: (317)817-2161
Types of Insurance Licensed to Write: - Accident
- Health
- Life
Rating By Financial Organization: The following organizations rate insurance companies on their financial strength and stability. S
Financial Information:
As of: Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 Total Assets $2,077,670,526 $2,187,859,114 $2,361,267,595 Total Liabilities $1,974,736,298 $2,082,708,062 $2,252,770,603 Asset to Liability Ratio 1.05 1.05 1.05 Capital $2,500,000 $2,500,000 $2,500,000 Net Surplus $100,434,228 $102,651,052 $105,996,993 Net Life Ins $71,587,000 $69,077,000 $63,439,000
Premiums:
As of: Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 Life and Annuities $144,673 $173,970 $167,753 Accident and Health $39,018,139 $32,989,671 $31,186,511 Property and Casualty N/A N/A N/A Total Texas Premium $39,162,812 $33,163,641 $31,354,264 National Premium $443,495,394 $403,098,261 $385,617,130
Complaint Information: When considering the company's complaint index and ratio, be sure to review the company history information displayed below for recent acquisitions, mergers, or other events that may affect the figures displayed for this company.
DEC 31, 2006 DEC 31, 2007 MAY 15, 2008 Justified Complaints: Life and Annuity 0 0 0 Accident and Health 7 4 6 Homeowner 0 0 0 Automobile 0 0 0 Complaint Ratio/Index Ratio Index Ratio Index Life and Annuities .0000 .0000 .0000 .0000 N/A Accident and Health .0160 2.4506 .0092 1.2215 N/A Homeowner .0000 .0000 .0000 .0000 N/A Automobile .0000 .0000 .0000 .0000 N/A
Justified Complaints: the number of justified complaints closed against the company for the line of insurance and year indicated. A complaint is justified if there is an apparent violation of a policy provision, contract provision, rule, or statute, or there is a valid concern that a prudent layperson would regard as a practice or service that is below customary business or medical practice.
Complaint Ratios: the ratio, expressed as a percentage, is the number of closed justified complaints divided by the number of policies the company had in force for the line of insurance and year indicated.
Complaint Index: indicates how a company's ratio of the number of complaints to the number of policyholders compares to the average for all insurers. The index is calculated by dividing the company's percentage of complaints for a specific line of insurance by the company's percentage of the policies in force for the same line of insurance. The average index is 1.00. A number less than 1 indicates fewer complaints than average; a number greater than 1 indicates more complaints than average. For the most recent completed year, a given insurer's index may change over time, as policy count data is received by TDI. This will affect each insurer's percentage of the total.
Complaints against an insurance company are not part of the complaint tally above if the insurance company served only as a Third Party Administrator (TPA), a company hired simply to administer the paperwork of a health plan. Instead, they are included in the complaint record of the insurance company or HMO that hired the TPA. If a bonafide self-insured benefit plan hired the TPA, no complaint numbers are recorded as a part of the company/TPA's profile. Neither are profiles available for self-insured plans, as such plans are regulated under federal law.
Company History:
Date Event 01-28-2008 PENALTY OF $2,000 FOR VIOLATIONS FOUND DURING A COMPLAINT INVESTIGATION IN NEBRASKA. 01-08-2008 PENALTY OF $1,000 FOR VIOLATIONS FOUND DURING A COMPLAINT INVESTIGATION IN NEBRASKA. 04-21-2006 PENALTY OF $2,500,000 PAID BY COMPANY, CONSECO INSURANCE COMPANY, CONSECO LIFE INSURANCE COMPANY, CONSECO SENIOR HEALTH INSURANCE COMPANY, JEFFERSON NATIONAL LIFE INSURANCE COMPANY, AND CONSECO MEDICAL INSURANCE COMPANY FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN MINNESOTA. 04-12-2005 PENALTY OF $58,469 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN MISSOURI. 02-11-2004 PENALTY OF $11,000 FOR FAILURE TO PROVIDE FOR MIDTERM CANCELLATION OF MEDICARE SUPPLEMENT POLICIES, FAILURE TO ISSUE PRO RATA REFUND OF PREMIUMS TO INSUREDS, AND FAILURE TO IMMEDIATELY REFUND PREMIUMS TO POLICYHOLDERS IN WISCONSIN. 01-20-2004 PENALTY OF $5,000 FOR FAILURE TO TIMELY FILE LOSS RESERVE CERTIFICATION IN MINNESOTA 04-29-2002 PENALTY OF $7,500 FOR ADVERTISING VIOLATIONS AND FAILURE TO TIMELY RESPOND TO INQUIRIES IN TEXAS. 03-25-2002 EFFECTIVE 7/1/2001, FRONTIER NATIONAL LIFE INSURANCE COMPANY (05230) CLEVELAND, OHIO MERGED INTO COMPANY 02-26-1999 CAPITOL AMERICAN LIFE INSURANCE COMPANY 02-26-1999 FORMERLY: CAPITOL AMERICAN LIFE INSURANCE COMPANY 01-28-1998 PENALTY OF $48,000 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN KENTUCKY. 10-04-1993 PENALTY OF $50,000 FOR VIOLATIONS REGARDING THE SALE OF INSURANCE POLICIES IN INDIANA. 10-29-1992 MOVED HOME OFFICE FROM SCOTTSDALE, ARIZONA TO PHOENIX, ARIZONA 07-10-1992 PENALTY OF $42,500 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN ARIZONA. 07-02-1992 PENALTY OF $50,000 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN NORTH DAKOTA. 12-05-1991 PENALTY OF $25,000 FOR VIOLATIONS OF THE INSURANCE LAWS IN INDIANA. 10-15-1991 PENALTY OF $9,300 FOR FAILURE TO REFUND MONEY TO POLICYHOLDERS WITHIN 10 DAYS IN MINNESOTA.
Carmel IN 46032
your company was fined, how much?
"PENALTY OF $2,500,000 PAID BY COMPANY, CONSECO INSURANCE COMPANY, CONSECO LIFE INSURANCE COMPANY, CONSECO SENIOR HEALTH INSURANCE COMPANY, JEFFERSON NATIONAL LIFE INSURANCE COMPANY, AND CONSECO MEDICAL INSURANCE COMPANY FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN MINNESOTA. "
" Conseco Reaches Settlement of Multistate Market Conduct Examination
CARMEL, Ind., May 7 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) today announced a settlement among state insurance regulators and two of its insurance subsidiaries: Conseco Senior Health Insurance (CSHI) Company and Bankers Life and Casualty Company. The settlement concludes a multistate market conduct examination led by Pennsylvania, Illinois, Indiana, Texas and Florida related to long-term care claims practices and procedures, complaint handling, and sales and marketing practices.
Under the agreement:
-- Conseco will pay a fine of up to $2.3 million, with an
additional $10 million in the event Conseco fails to meet the process improvement
benchmarks over the next two-and-a-half years.
-- Conseco will review certain claims from 2005-2007 and provide up to $4
million of remediation.
-- Conseco will implement a detailed process improvement plan designed to
achieve performance standards for the timely processing of claims and
complaints and other processes, as part of an improvement program
undertaken by the company in 2007. Under that program, Conseco is
moving several long-term care back-office functions to the Long-Term
Care Group, Inc. to better manage the CSHI business and improve
customer service, and Conseco is investing $26 million on systems
enhancements and business process improvements over the next
two-and-a-half years. The plan will be monitored by the lead states."
---------------------------------------END OF QUOTE------------------------- ------------------------------ -----------
Now, did you guys have to shell out 2.3 million and be monitored and agree to changes because
your company is so honest, dedicated to doing the right thing for the customers, and so on?
I don't think so, and I think this piece of news should be dessiminated far and wide on the web,
along with the New York Times article.Given from what I have found out about the way your company takes advantage of the elderly,
the widowed (my mom is in both categories), if you think that sending your "exhibits" and giving
me the old "okie doke" is going to make me think everything is fine, then you are out of touch
with reality, and don't know me very well.And, while we are at it, about the experience of Conseco health related companies in Texas,
how about good old "CONSECO MEDICAL INSURANCE COMPANY" in Texas, that had its license to do business
in Texas CANCELLED?https://apps.tdi.state.tx.us/pcci/pcci_show_profile.jsp?tdiNum=93903 | Date | Event |
|---|---|
| 10-29-2003 | EFFECTIVE 7/1/2003, MERGED INTO WASHINGTON NATIONAL INSURANCE COMPANY (89550) CHICAGO, ILLINOIS CERTIFICATE OF AUTHORITY CANCELLED |
| 09-26-2002 | PENALTY OF $5,000 FOR FAILURE TO TIMELY FILE AN ANNUAL CERTIFICATION FORM IN TEXAS. |
| 04-26-2002 | APPROVED TO WITHDRAW FROM WRITING INDIVIDUAL ACCIDENT AND HEALTH INSURANCE IN TEXAS. COMPANY MAY NOT RE-ENTER MARKET FOR THESE LINES WITHOUT PRIOR APPROVAL UNTIL 04/26/2007. |
| 10-12-2001 | PENALTY OF $8,500 PAID BY COMPANY AND MANHATTAN NATIONAL LIFE INSURANCE COMPANY FOR FAILURE TO FILE WITHIN 30 DAYS REVISIONS TO AN INFORMATIONAL RATE FILING IN NEW JERSEY. |
| 09-06-2001 | APPROVED TO WITHDRAW FROM WRITING GROUP ACCIDENT AND HEALTH INSURANCE IN TEXAS. COMPANY MAY NOT RE-ENTER MARKET FOR THESE LINES WITHOUT PRIOR APPROVAL UNTIL 09/06/2006. |
| 05-30-2001 | PENALTY OF $5,000 FOR FAILURE TO OFFER A RIDER TO BENEFIT PLANS AND FOR A RATE VIOLATION IN TEXAS. |
| 05-23-2001 | PENALTY OF $25,000 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN MARYLAND. |
| 04-09-2001 | PENALTY OF $26,000 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN ARIZONA. |
| 03-06-2001 | PENALTY OF $5,000 FOR FAILURE TO RESPOND IN A TIMELY MANNER TO INQUIRIES FROM THE DIVISION OF INSURANCE IN SOUTH DAKOTA. |
| 02-07-2001 | PENALTY OF $5,000 FOR VIOLATIONS FOUND DURING A HEALTH CARE APPEALS AUDIT IN ARIZONA. |
| 09-30-1999 | EFFECTIVE 01/01/1999 NATIONAL GROUP LIFE INSURANCE COMPANY (05190) CHICAGO, ILLINOIS MERGED INTO COMPANY |
| 08-24-1999 | EFFECTIVE 01/01/1999 CONTINENTAL LIFE & ACCIDENT COMPANY (02050) CHICAGO, ILLINOIS MERGED INTO COMPANY |
| 02-04-1999 | CONNECTICUT NATIONAL LIFE INSURANCE COMPANY |
| 02-04-1999 | FORMERLY: CONNECTICUT NATIONAL LIFE INSURANCE COMPANY MOVED HOME OFFICE FROM SCHAUMBURG, ILLINOIS TO CHICAGO, ILLINOIS |
| 11-24-1998 | PENALTY OF $5,000 FOR FAILING TO FILE PREMIUM INCREASES IN KANSAS. |
| 05-13-1996 | REDOMESTICATED FROM SIMSBURY, CONNECTICUT TO SCHAUMBURG, ILLINOIS BY WAY OF CHARTER AMENDMENT |
| 05-08-1995 | EFFECTIVE 01/01/1990 PARTIALLY REINSURED CERTAIN LIFE AND ANNUITY BUSINESS OF MONTGOMERY WARD LIFE INSURANCE COMPANY (56100) SCHAUMBURG, ILLINOIS |
| 01-07-1994 | REDOMESTICATED FROM NEWARK, NEW JERSEY TO SIMSBURY, CONNECTICUT BY WAY OF CHARTER AMENDMENT |
| 03-16-1992 | PENALTY OF $5,000 FOR VIOLATIONS FOUND DURING A MARKET CONDUCT EXAMINATION IN ARIZONA. |
Labels: 2008, conseco, EXAMINATION, GUILTY, investigation, MARKET CONDUCT
posted by MRS LAVERTY at
11:51 AM
2 Comments:
This has to do with ACE HARDWARE?
That's what the blogs are telling us and so what are you and explosives doing with elderly people?
Furthermore, they are saying you are involved with BEESS and IRON CAER?
This the kind of CAER you " do"?
With RON HEVENER?
And it is based in SYRIA?
SYLOPA?
How is this " possible" unles this is CONST?
CONSECO...this is it , right?
It's a scam for profits with SECHAZ ?
We have heard all about BEN & TIM and the AEGEAN on
HYDRA?
This is OREGON's connection to RICE?
VERMONT RICK and GATES?
Texas BOO?
REMMY GENTO LITTLE ZOO?
It's all over the place and so is MP and the BUNN- BUNN 5.
AKEYN - AK'S - CHOPER CHO in the COCHOUN .
Oh yeah...we are all onto you....INGLAMME?
Mob " bastards".
If you want life insurance to protect you and your family or some money for your children and your beloved wife, the right choice is the life insurance oregon. They offer you lot of features to safe your extra income for the future of you and your family.
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