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Administrative Orders - 2006

Enforcement Orders

Company - Marketplace Violations

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AF&L Insurance Company
Warrington, Pennsylvania
Violation: Issued a group health insurance policy to unapproved association.
Penalty: $5,000 fine
Date of Order: 10/02/2006
Final
AIG Life Insurance Company
Wilmington, Delaware
Violation: Issued group health insurance policies to unapproved associations.
Penalty: $10,000 fine
Date of Order: 09/28/2006
Final
American Standard Insurance Company of Wisconsin
Madison, Wisconsin
Violation: Refused to pay a claim without conducting a reasonable investigation.
Penalty: $3,000 fine
Date of Order: 12/12/2006
Final
American-Amicable Life Insurance Company of Texas
Pioneer American Insurance Company
Pioneer Security Life Insurance Company
Waco, Texas
Violation: Georgia and Texas insurance regulators alleged that the companies violated insurance or consumer protection statutes in the marketing and sale of life insurance policies to members of the military. The companies denied the allegations, but entered into a multi-state regulatory settlement agreement (RSA) dated June 8, 2006 with Georgia, Texas and other state insurance regulators that chose to participate.
Penalty: The companies agreed to pay $70 million in remedial benefits to policyholders nationwide, cease certain marketing activities, and make periodic reports to regulators.
Date of Order: 08/21/2006
Final
Regulatory Settlement Agreement
Ameritas Life Insurance Corp.
Lincoln, Nebraska
Violation: Issued a group health insurance policy to an unapproved association.
Penalty: $5,000 fine
Date of Order: 03/01/2006
Final
Bankers Fidelity Life Insurance Company
Atlanta, Georgia
Violation: Made a false statement to the DCBS director.
Penalty: $10,000 fine
Date of Order: 09/06/2006
Final
Boston Mutual Life Insurance Company
Canton, Massachusetts
Violation: A multi-state market conduct examination by the insurance regulators of Georgia, Massachusetts and Texas found problems with the sale and servicing of whole life policies by Boston Mutual to the military market. While not admitting or denying the findings, Boston Mutual entered into a multi-state regulatory settlement agreement, dated May 28, 2006, with the three states and other state insurance regulators that choose to participate.
Penalty: Boston Mutual agreed to pay remedial benefits to policyholders and take corrective actions.
Date of Order: 07/31/2006
Final
Massachusetts Market Conduct Examination
Multi-state Market Conduct Examination
Central United Life Insurance Company
Houston, Texas
Violation: Issued a group health insurance policy to an unapproved association.
Penalty: $5,000 fine
Date of Order: 03/21/2006
Final
Chesapeake Life and Health Insurance Company, The
North Richland Hills, Texas
Violation: Terminated agents without sufficient notice.
Penalty: $2,200 fine
Date of Order: 09/11/2006
Final
Chesapeake Life Insurance Company, The
Richland Hills, Texas
Violation: Issued group health insurance policies to unapproved associations.
Penalty: $45,000 fine
Date of Order: 07/10/2006
Final
Combined Insurance Company of America
Glenview, Illinois
Violation: Failed to annually file Medicare supplement rates.
Penalty: $9,000 fine
Date of Order: 06/13/2006
Final
Golf Marketing Worldwide, LLC
Norwalk, Connecticut
Violation: Transacted insurance in Oregon as an insurer without a license.
Penalty: Ordered to immediately cease and desist from transacting insurance in Oregon as an insurer without a license.
Date of Order: 06/12/2006
Cease & Desist
Hartford Life and Accident Insurance Company
Simsbury, Connecticut
Violation: Issued group health insurance policies to unapproved associations.
Penalty: $17,500 fine
Date of Order: 03/15/2006
Final
Health Net Health Plan of Oregon, Inc.
Tigard, Oregon
Violation: Failed to timely or completely respond to inquiries from the DCBS director.
Penalty: $10,000 fine
Date of Order: 10/02/2006
Final
Liberty Life Insurance Company
Greenville, South Carolina
Violation: A target multi-state market conduct examination found that Liberty Life did not pay premium taxes from 1998 to 2002 on complimentary accidental death insurance provided to mortgage loan customers of certain financial institutions in the majority of states in which the insurance was marketed. The company disputed that it was required to pay premium tax on the complimentary premiums, but entered into a regulatory settlement agreement with South Carolina and other participating regulators, including Oregon.
Penalty: Liberty Life agreed to take certain corrective actions and make an administrative payment of up to $3,075,950 to the participating states, of which $126,127 was allocated to Oregon.
Date of Order: 01/24/2006
Final
Multi-State Market Conduct Exam
Regulatory Settlement Agreement
LifeWise Health Plan of Oregon, Inc.
Portland, Oregon
Violation: Failed to acknowledge and act promptly on claim communications.
Penalty: $20,000 fine
Date of Order: 05/22/2006
Final
National Union Fire Insurance Company of Pittsburgh, Pennsylvania
New York, New York
Violation: Issued group health insurance policies to unapproved associations.
Penalty: $30,000 fine
Date of Order: 09/27/2006
Final
Pacific Grocers Employee Benefits Trust
Seattle, Washington
Violation: Transacted insurance in Oregon as an insurer without a license. Filed financial documents late.
Penalty: $16,400 fine
Date of Order: 06/13/2006
Final
Pan-American Life Insurance Company
Pan-American Life Insurance Company
Violation: Issued a group health insurance policy to unapproved associations.
Penalty: $30,000 fine
Date of Order: 10/11/2006
Final
Progressive Northern Insurance Company
Mayfield Village, Ohio
Violation: Failed to acknowledge and act promptly upon claim communications.
Penalty: $10,000 fine
Date of Order: 12/18/2006
Final
Title Insurance Company of Oregon dba First American Title Insurance Company of Oregon
Portland, Oregon
Violation: Gave a thing of value to an intermediary.
Penalty: $4,000 fine
Date of Order: 09/06/2006
Final
United States Life Insurance Company in the City of New York, The
Houston, Texas
Violation: Issued a group health insurance policy to unapproved associations.
Penalty: $20,000 fine
Date of Order: 10/02/2006
Final
Western and Southern Life Insurance Company, The
Cincinnati, Ohio
Violation: Issued insurance policies with racially-differentiated premiums.
Penalty: The Ohio Department of Insurance, on behalf of other state insurance regulators, entered into a Multi-State Regulatory Settlement Agreement with WSLIC on August 24, 2005. WSLIC agreed to take certain corrective actions; provide to former and current policyholders, and possibly one or more educational institutions or charities that serve African-American causes or interests, certain remedial benefits totaling a minimum of $2 million; and pay an administrative penalty totaling $400,000. Oregon's share of the administrative penalty was $1,000.
Date of Order: 01/03/2006
Final
Ohio Consent Order
Ohio Market Conduct Examination Report
Zurich American Insurance Company and its insurance subsidiaries
Schaumburg, Illinois
Violation: Zurich and its subsidiaries allegedly participated in anti-competitive practices relating to contingent compensation. The NAIC Broker Activities Task Force, in coordination with state attorneys general and insurance regulators, negotiated a multi-state regulatory settlement.
Penalty: Zurich agreed to pay $151.7 million to policyholders nationwide. Oregon policyholders are estimated to receive $821,339, subject to court approval. Zurich also agreed to pay $20 million to reimburse certain states for investigative costs; to implement a compliance program; to cease and desist from knowingly giving fictitious quotes, agreeing to rig quotes, or participating in any so called "pay-to-play" schemes; to cooperate with the participating states; and to disclose base and contingent compensation to all commercial insureds.
Date of Order: 06/27/2006
Final
Exhibit A
Exhibit B
Exhibit C
Oregon Settlement Agreement
Interstate Settlement Agreement