Filed Under:Annuities, Suitability

Bankers Life and Casualty hit with $3.2 million fine by several states

Pennsylvania is one of five states that will benefit from the Bankers' Life settlement. Here, the Philadelphia skyline. (AP Photo/Tom Mihalek)
Pennsylvania is one of five states that will benefit from the Bankers' Life settlement. Here, the Philadelphia skyline. (AP Photo/Tom Mihalek)

Bankers Life and Casualty Co. has agreed to pay $3.2 million fine to several states after it was determined that the insurer did not follow through on recommendations made to it back in 2007.

The original regulatory examination centered on non-compliance issues related to Bankers’ annuity, long-term care and life insurance lines of business. The review, according to a statement from the Pennsylvania Department of Insurance, found continued problems regarding oversight of changes to applications as well as inappropriate denials of maximum benefit claims and lack of timely claims investigations and claims settlements.

“Consumer protection and ensuring insurance company compliance is a regulator’s primary responsibility,” Pennsylvania Insurance Commissioner Michael Consedine said in a statement. “Our re-examination determined that Bankers failed to comply with a number of recommendations from a prior exam report.”

The follow-up review started on Feb. 8, 2010, and covered a period from March 31, 2008 through Dec. 31, 2009. In addition to Pennsylvania, other states party to the agreement are Indiana, Illinois, Texas and Florida. The fine will be distributed among these five states.

In an email exchange, a spokesperson for Bankers Life, a subsidiary of CNO Financial Group, said the company was pleased the review had been resolved. “The original examination dealt with a number of legacy issues, and the re-examination confirmed significant progress and improvement on those areas, which the company continues to work to address,” wrote Jennifer Born, a spokesperson for CNO Financial.

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