Conseco to pay $10m to settle complaints of cost increases for life insurance policies
By APWednesday, June 30, 2010
Conseco to pay $10m in cost increase settlement
INDIANAPOLIS — An Indiana insurance company will set up a $10 million fund to settle a multistate investigation into increases in policy costs.
Regulators from California, Florida, Iowa, Indiana and Texas investigated Conseco’s handling of more than 12,000 Lifetrend insurance policies after receiving complaints from consumers who had received notices in the fall of 2008 about premium increases.
Investigators say Conseco failed to tell consumers some policies were underfunded and knew products weren’t being properly administered but took no action.
The agreement also requires Conseco Life to pay $1 million to be divided among the investigating states.
Conseco spokesman Tony Zehnder says the company accounted for the settlement at year-end 2009.
