HARRISBURG, Pa., Nov. 20, 2012 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department has announced the conclusion of a multi-state settlement agreement on the re-examination of Bankers Life and Casualty Company. The state will receive a share of the $3.2 million penalty levied against the insurance company.
"Consumer protection and ensuring insurance company compliance is a regulator's primary responsibility," Insurance Commissioner Michael Consedine said. "Our re-examination determined that Bankers failed to comply with a number of recommendations from a prior exam report."
Bankers Life and Casualty Company, based in Illinois, was re-examined as a follow-up to a 2007 regulatory review. The review revealed concerns the company failed to sufficiently check changes to applications, inappropriately denied maximum benefit claims and failed to conduct timely claims investigations and claims settlements. These issues of non-compliance related to the annuities, long-term care and life insurance lines of business.
Under the settlement, Bankers Life will pay $3,200,000 to be shared among the states that participated in the settlement. In addition to Pennsylvania, other lead states conducting the regulatory review included Illinois, Indiana, Florida and Texas.
A copy of the settlement agreement is available at www.insurance.pa.gov.
Media contact: Rosanne Placey or Melissa Fox, 717-787-3289
SOURCE Pennsylvania Insurance Department