California Settles Life Insurer Violations Case

California State Insurance Commissioner Steve Poizner announced today that the Department of Insurance has reached a $600,000 settlement agreement with Life Insurance Company of North America ("LINA") to resolve allegations of disability insurance claims handling violations from February 2005 through June 20, 2006.

In addition to the fine, LINA agreed to make changes in its claims handling policies and procedures, and to review previously closed claims to determine if additional benefits are due.

The handling violations were found when the Department performed an onsite examination of LINA's claims handling practices. During this examination, the Department found instances where LINA had made claims determinations prior to requesting medical records and examples of LINA adjusters ignoring substantial new information after a claim had initially been denied...

Insurance Journal: California Settles Life Insurer Violations Case