Pennsylvania Department of Insurance review reveals short-term violations of limited duration


HARRISBURG, Pennsylvania, November 10Pennsylvania Department of Insurance published the following news:

Pennsylvania Insurance Commissioner Jessica altman recently published market driving test reports involving two limited-term short-term insurance companies, resulting in $ 400,000 in penalties and restitution interest for Pennsylvania consumers.

Governor Wolf and the ministry have prioritized consumer protection in the insurance industry, ”said Commissioner Altman. Pennsylvania insurance laws. “

The review of Companion Life Insurance Company (CLIC) was launched in January 2018, following internal referrals from the ministry Consumer Services Bureau. Colorado, Delaware, and Vermont concurrently investigated LINC, resulting in similar findings of non-compliance and violations of state insurance laws and regulations. Pennsylvania findings included a lack of oversight of the management of general agents / third-party administrators, acceptance of cases from unnamed agents, non-compliance with forms and rates, lack of records and documents, processing of claims and the absence of contractual provisions required by the State.

In view of the similar results of the examinations, the LINC was referred to the NAIC Market Equity Task Force (MAWG). In response, the ministry suspended its review and became part of the MAWG’s action, as all the issues found in Pennsylvania review would be addressed in the settlement agreement.

The RSA outlined a corrective plan to address the non-compliance and violations found during the MAWG review. Companion Life will undergo a one-year monitoring period which is expected to begin in the coming months, and will submit quarterly reports to lead states, including Pennsylvania, detailing the company’s activities to correct deficiencies.

States participating in the RSA have perceived a $ 5 million penalty against Compagnon Vie. These funds were distributed based on the jurisdictions’ percentage of gross premiums written in 2019. Pennsylvania attribution is $ 249,958. Additionally, CLIC consumers will receive interest payments to process late decisions regarding claims that have now been paid.

The ministry also published a report on a market driving test conducted on the practices and procedures of Liberty Life Insurance Company. The examination, which covers the period from july 2016 To September 2017, identified concerns regarding the handling of company complaints, including delays in notification and processing; as well as unclear statements made by producers and vague language in the company’s advertisements, which members interpreted as distorting the actual coverages provided as part of the company’s short-term and time-limited health plans.

Liberty Life Insurance Company was ordered to remedy numerous violations by modifying company practices and procedures, and paid a $ 150,000 sadness. The ministry will verify that these corrective actions have been taken through a reconsideration process.

“The department continues to closely monitor market activity related to short-term insurance and other excluded benefit plans that may be inappropriately marketed or mistakenly viewed by consumers as true insurance. disease, ”Altman said. “As a result of these reviews, Companion Life and Freedom Life will improve their procedures to help consumers make more informed decisions about their coverage and care, but consumers should continue to be vigilant when considering any of these. options and understand their limitations.

“At the same time, we remain committed to prosecuting entities that deceive consumers or fail to give their members the benefits to which they are entitled under the law. Reviews like these are a key tool to assist the ministry in its ongoing monitoring of the industry, ”Altman added.

Consumers who need to purchase health insurance for themselves or for their family and want to be sure they have comprehensive medical insurance, are encouraged to visit Pennie.comOpens In A New Window, Pennsylvania state-level health insurance market. All plans on Pennie sold are full health insurance and Pennie does not offer any excluded benefit plans. Pennie’s open enrollment period, where any Pennsylvanian can enroll for coverage, began on November, 1st and will work until January 15th. Consumers must register before December 15 to get coverage that begins on January 1, 2022.

Consumers who believe their insurance plans do not comply with Commonwealth laws or regulations, or who have questions about the benefits to which they are entitled, are urged to contact the Insurance Department Consumer Services Bureau online or at 1-877-881-6388.


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