Conseco Unit Seeks Fla. Hearing, In Talks On Problem

A Conseco Inc. (CNO) unit requested a hearing after a Florida state agency threatened to suspend or revoke its license because of allegations of mismanagement and misleading consumers... The Florida Office of Insurance Regulation had accused Conseco Life of misleading consumers about the funding of its policies and of withholding important information from the agency. The agency said that since 2006, Conseco Life issued annual statements to policyholders that failed to indicate their Lifetrend policies were underfunded.

Conseco Life notified about 5,000 policyholders this fall of an increase in their monthly rates, and 90% of them were told that their policies were underfunded. Conseco Life sent another letter a week later notifying policyholders they needed to submit payments for the "shortfall" no later than Jan. 3...

CNN Money: Conseco Unit Seeks Fla. Hearing, In Talks On Problem