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Connecticut docks insurance companies $400,000 for various infractions

Posted On Fri, February 4, 2011

Two Wisconsin-based health insurance companies are being reprimanded by the Connecticut Insurance Department for multiple violations regarding business practices relating to individual and group health policies.

"Our comprehensive reviews turned up infractions in a number of areas – from unlicensed agents to unjustified denials of claims," said Barbara Spear, the state's acting insurance commissioner. "Policyholders expect a level and standard of service, and in many instances, did not receive it. It is essential that insurance companies that want to do business in Connecticut strictly adhere to state laws and mandates."

The health insurance providers - Time Insurance and John Alden Life Insurance - were fined for a series of infractions, including failure to remit payment within 45 days, improperly licensing several agents employed by the companies and insufficient documentation.

The health insurance companies were docked a combined $400,000. The fines are a follow-up to $2.1 million in fines the companies agreed to pay in 2008 for infractions the CID uncovered in a separate investigation.

Every year, health insurance companies pay millions in fines for various infractions. In Washington state, for example, insurers were charged over $500,000 in 2010 for offenses like billing errors and late filing of documents.


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