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Assurant announced on April 7th that it has come to terms with the Montana Commissioner of Securities and Insurance, Monica Lindeen, for not complying with Montana law. Monica Lindeen headed the settlement with Assurant Health, which under its old policy was not providing coverage to women for prenatal care and pregnancy. Additionally, Lindeen cited that there was a lack of coverage for mammography, reconstructive breast surgery, diabetes management and care, and severe mental illness. Assurant was assessed a $225,000 fine, paid more than $39,500 in claims for benefits, and refunded $59,500 in premiums improperly charged for newborns. The fine assessed to Assurant will be deposited into the state's general fund.
According to Lindeen, Assurant's policies were not in compliance with Montana law. Assurant has since adjusted its policy to meet the requirements set in forth by the state. Assurant, along with its affiliated companies, John Alden Life Insurance Co. and Time Insurance Co., continues to be in the spotlight for bad faith insurance claims.
Recently, Time Insurance withdrew the health insurance policy of a Colorado woman, and a jury awarded over $37 million to the plaintiff for the company's wrongdoings. The plaintiff was involved in a serious car accident that led to multiple injuries and resulted in medical bills of more than $200,000. When the plaintiff informed Time Insurance of the incident, she was told that she no longer had insurance because her policy had been rescinded. According to Time Insurance, the policy was canceled because the plaintiff allegedly failed to notify the company on her insurance application that she had previously sought medical treatment for a panic attack.
A Colorado jury made Time pay over $37 million for its wrongful rescission of the plaintiff's medical benefits. Time Insurance was accused of not seeking information regarding the plaintiff's medical history until she filed the claim seeking medical benefits, which she was rightfully owed. Instead of investigating her medical history before issuing the policy, Time Insurance decided to offer her insurance, accept years of insurance premium payments, and then cancel her insurance when it was time for the company to live up to its end of the bargain. During the trial it was discovered that once an individual files a claim for medical benefits under his or her policy, Time dissects the policy in an effort to look for inconsistencies that could be used to justify cancellation. Although Assurant hoped that its rescission of the plaintiff's insurance policy would make her go away, the plaintiff took the claim to court and was awarded a large monetary judgment. In response to her recent victory the plaintiff stated that, "hopefully, this will change the way they do business."
The personal injury law firm of Dyer, Garofalo, Mann & Schultz L.P.A. handles cases for victims of Assurant rescission practices.
