Department of Insurance announces
multistate settlement with Bankers Life and Casualty Co.
Illinois participated in multistate
effort to protect consumers and will share part of a $3 million
penalty against the insurance company
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[November 26, 2012]
CHICAGO -- Illinois Department
of Insurance Director Andrew Boron announced last week that an
agreement has been reached with Bankers Life and Casualty Co., known
as Bankers, as part of a multimillion-dollar settlement with several
states. Under the settlement, Bankers agreed to pay $3,200,000 to
states that are a party to the settlement. Illinois will receive
$391,566 under the settlement.
The regulatory settlement agreement is the result of a multistate re-examination
to investigate Bankers' practices. The re-examination, also considered a
follow-up investigation, was required as part of a 2008 settlement with Bankers
that said the lead regulators would conduct a follow-up examination of Bankers
after the initial examination in 2007.
The re-examination determined that
Bankers failed to come into full and timely compliance with respect to four
recommendations of the 2007 Exam Report, which were related to alterations of
applications, maximum benefit claims denials, timely claims investigation and
claims settlements. These four issues of noncompliance related to the annuities,
long-term care and life insurance lines of business.
"We applaud the cooperative efforts of our fellow regulators in working
together to protect consumers," said Boron. "This settlement demonstrates the
diligence exercised by all the parties in following up on violations found in an
earlier examination and ensuring compliance on the part of the company."
In addition to Illinois, states participating in this settlement agreement
are Indiana, Pennsylvania, Texas and Florida.
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A copy of the settlement agreement is available at on the Department
of Insurance website at
http://insurance.illinois.gov/Home/ImpLinks.asp. Consumers who
have any questions regarding this settlement, or who have any
questions or concerns about their insurance, should contact the
department's Consumer Division at
http://insurance.illinois.gov/ or call 866-445-5364.
The mission of the Illinois Department of Insurance is to protect
consumers by providing assistance and information, by efficiently
regulating the insurance industry's market behavior and financial
solvency, and by fostering a competitive insurance marketplace. The
department assists consumers with all insurance complaints,
including health, auto, life and homeowner.
Illinois Department of
file received from the
Illinois Office of Communication and Information]