Conseco, the holding company of a group of insurance businesses, has announced a settlement among state insurance regulators and two of its insurance subsidiaries: Conseco Senior Health Insurance and Bankers Life and Casualty.
The settlement concludes a multi-state market conduct examination led by Pennsylvania, Illinois, Indiana, Texas and Florida related to long-term care claims practices and procedures, complaint handling, and sales and marketing practices.
Under the agreement, Conseco will pay a fine of up to $2.3 million, with an additional $10 million if it fails to meet the process improvement benchmarks over the next two-and-a-half years. Conseco will review certain claims from 2005-2007 and provide up to $4 million of remediation.
Jim Prieur, CEO of Conseco, said: Conseco encouraged and fully supported this exam, especially in light of industry policymakers’ focus on senior marketplace issues relating to long-term care and spiraling healthcare costs. As we expected, after an extensive review the examiners did not find that Conseco had engaged in a practice of improper claims denials.