Washington Commissioner Issues Multiple Fines, Enforcement Actions

Washington’s Office of the Insurance Commissioner has ordered UnitedHealthcare Insurance Co. of Minneapolis to pay a $59,000 fine following an agency investigation into the company’s use of unapproved contracts to add chiropractors to its provider network.

The agency ordered the fine after an investigation disclosed the company continued to use the unapproved contracts after it had been notified that it was violating insurance regulations intended to protect consumers.

In unrelated enforcement actions, the Office of the Insurance Commissioner:

* Fined St. Paul Fire and Marine Insurance Co. and affiliated companies, of Hartford, Conn., $170,000 for multiple violations of Washington insurance law discovered during a market conduct examination of the company. The agency suspended $85,000 of the fine on condition that the company not have additional violations during the next two years. The violations included failure to ensure that its agents were appropriately licensed and appointed, failure to provide required documentation, failure to send timely renewal notifications, and other violations.

Additionally, the company was ordered to pay $50,000 from a previously suspended fine because the market conduct exam found violations that voided terms of a suspension from an earlier, unrelated exam.

* Fined Great-West Healthcare of Washington, Inc., Bellevue, $50,000 for multiple violations of Washington insurance laws discovered during a market conduct exam of the company. Violations included claims handling, agent licensing, misleading advertising, premiums and other issues.

* Fined National Foundation Life Insurance Co., of Fort Worth, Texas, $32,500 for charging rates in excess of those approved by the agency.

* Banned Evolution Services Inc., of South Jordan, Utah, and its principals, from marketing and selling health insurance plans in Washington, and ordered it to pay a $20,000 fine for selling illegal coverage to small employers in Washington.

* Ordered Bankers Life and Casualty Co., of Chicago, Ill., to pay a $7,500 fine for paying bonuses to agents for the sale of Medicare supplement policies in violation of state regulations.

* Fined Aetna Health Inc., of Seattle, $7,000 for using different rates for premiums than those approved by the agency.

* Ordered American General Assurance Co., of Schaumburg, Ill., to pay a $3,500 fine for violations of state laws and regulations related to the partial denial of a claim against a credit life insurance policy.

* Revoked the licenses of independent agents Barbara C. Leaverton and Michael R. Leaverton, of Sunnyside, for unfair or deceptive acts and other violations. The revocations were stayed pending appeals.

* Revoked the exemption certificate of the International Fellowship of Christians and Jews, Inc., Chicago, Ill., for failing to file statements and pay annual fees.

The agency also fined the following companies for failing to file specified information and documentation as required:
* AAA Life Insurance Co., Livonia, Mich., ($375)
* Admiral Indemnity Co., Cherry Hill, N.J., ($2,500)
* American Century Casualty Co., Houston, Texas, ($4,000)
* American General Assurance Co., Schaumburg, Ill., ($1,250)
* American Home Assurance Co., New York, N.Y., ($3,500)
* American Security Insurance Co., Wilmington, Del., ($1,750)
* American Travelers Assurance Co., Norwalk, Conn., ($1,875)
* AMICA Mutual Insurance Co., Lincoln, R.I., ($625)
* Assurity Life Insurance Co., Lincoln, Neb., ($2,500)
* AXA Corporate Solutions Life Reinsurance Co., New York, N.Y., ($2,125)
* Boston Mutual Life Insurance Co., Canton, Mass., ($2,500)
* Capitol Life Insurance Co., Denver, Colo., ($3,125)
* Chase Insurance Co., Birmingham, Ala., ($1,750)
* Cherokee Insurance Co., Sterling Heights, Mich., ($2,875)
* Cincinnati Life Insurance Co., Cincinnati, Ohio, ($1,250)
* Clarendon National Insurance Co., New York, N.Y., ($6,375)
* Commonwealth Annuity and Life Insurance Co., Southborough, Mass., ($1,875)
* Commonwealth Land and Title Co., Richmond, Va., ($1,875)
* Congress Life Insurance Co., Milwaukee, Wis., ($2,000)
* Continental General Insurance Co., Omaha, Neb., ($1,000)
* Diamond State Insurance Co., Indianapolis, Ind., ($2,500)
* Doctors’ Co., an Interinsurance Exchange, Napa, Calif., ($3,000)
* Federal Home Life Insurance Co., Lynchburg, Va., ($11,500)
* Fidelity National Property and Casualty Insurance Co., New York, N.Y., ($1,750)
* First Allmerica Financial Life Insurance Co., Worchester, Mass., ($1,625)
* First American Property and Casualty Insurance Co., Santa Ana, Calif., ($2,125)
* General American Life Insurance Co., Johnstown, Pa., ($1,625)
* General Security National Insurance Co., New York, N.Y., ($3,625)
* General Star National Insurance Co., Stamford, Conn., ($5,000)
* Genworth Life and Annuity Insurance Co., Richmond, Va., ($375)
* Genworth Mortgage Insurance Corp. of North Carolina, Richmond, Va. ($375)
* Granite State Insurance Co., New York, N.Y., ($2,500)
* Greenwich Insurance Co., Wilmington, Del., ($1,500)
* Group Health Cooperative, Seattle, ($1,000)
* Hartford Life Insurance Co., Hartford, Conn., ($1,250)
* Hartford Life and Annuity Insurance Co., Hartford, Conn., ($1,250)
* ING Life Insurance and Annuity Co, Atlanta, Ga., ($1,250)
* ING USA Annuity and Life Insurance Co., Atlanta, Ga., ($1,250)
* J.M.I.C. Life Insurance Co., Deerfield Beach, Fla., ($2,000)
* Lawyers Title Insurance Corp., Richmond, Va., ($1,875)
* Liberty Life Assurance Co. of Boston, Dover, N.H.., ($1,375)
* Liberty Northwest Insurance Corp., Portland, Ore., ($2,500)
* Metropolitan Life Insurance Co., Johnstown, Pa., ($2,000)
* Midwest Employers Casualty Co., Chesterfield, Mo., ($1,750)
* Mid-West National Life Insurance Co. of Tennessee, North Richland Hills, Texas ($1,000)
* Midwestern United Life Insurance Co., Atlanta, Ga., ($1,125)
* Mony Life Insurance Co., New York, N.Y., ($1,500)
* Mony Life Insurance Co. of America, New York, N.Y., ($1,500)
* National Financial Insurance, Fort Worth, Texas, ($1,000)
* National Union Fire Insurance Co. of Pittsburgh, PA, Pittsburgh, Pa. ($2,500)
* Nationwide Life and Annuity Insurance Co., Dublin, Ohio, ($3,250)
* Nationwide Life Insurance Co., Dublin, Ohio, ($3,000)
* NCMIC Insurance, Clive, Iowa, ($3,000)
* New England Life Insurance Co., Johnstown, Pa., ($1,625)
* New Hampshire Insurance Co., New York, N.Y., ($2,500) North Coast Life Insurance Co., Spokane, ($1,000)
* North Pacific Insurance Co., Portland, Ore., ($2,500)
* North Pointe Insurance Co., Southfield, Conn., ($2,250)
* Odyssey America Reinsurance Corp., Stamford, Conn. ($2,500)
* OHIC Insurance Co., Columbus, Ohio, ($2,375)
* Onebeacon America Insurance Co., Foxboro, Mass., ($2,500)
* Onebeacon Insurance Co., Foxboro, Mass., ($3,000)
* Optimum Re Insurance Co., Dallas, Texas, ($2,375)
* Oregon Automobile Insurance Co., Portland, Ore., ($2,500)
* Penn-America Insurance, Bala Cynwyd, Pa., ($2,500)
* Penn Treaty Network American Insurance Co., Allentown, Pa., ($2,750)
* Praetorian Insurance Co., New York, N.Y., ($1,625)
* Professional Solutions Insurance Co., Clive, Iowa, ($2,500)
* Redland Insurance Co., New York, N.Y., ($2,375)
* Reliastar Life Insurance Co., Atlanta, Ga., ($1,250)
* Reliastar Life Insurance Co. of New York, Atlanta, Ga., ($1,625)
* SCOR Reinsurance Co., New York, N.Y., ($3,875)
* Security Life of Denver Insurance Co., Dallas, Texas ($1,125)
* Standard Guaranty Insurance Co., Miami, Fla., ($1,750)
* State Farm Mutual Automobile Insurance Co., Bloomington, Ill., ($1,000)
* Stonington Insurance Co., Addison, Texas, ($2,500)
* SUA Insurance Co., Chicago, Ill., ($2,500)
* Thrivent Financial For Lutherans, Appleton, Wis., ($13,200)
* Thrivent Life Insurance Co., Minneapolis, Minn., ($1,750)
* Transnation Title Insurance Co., Richmond, Va., ($1,875)
* TIG Specialty Insurance Co., Irving, Texas, ($2,500)
* ULICO Casualty Co., Washington, D.C., ($1,875)
* Unified Life Insurance Co., Overland Park, Kan., ($1,250)
* United Fire and Casualty Co., Cedar Rapids, Iowa, ($625)
* Universal Casualty Co., Elk Grove, Ill., ($1,500)
* Valley Forge Life Insurance Co. (successor to Sage Life Assurance Co. of America) Armonk, N.Y., ($1,375)
* Vantislife Insurance Co., Windsor, Conn., ($1,750)
* Voyager Property and Casualty Insurance Co., Miami, Fla., ($1,750)
* Westport Insurance Co., Overland Park, Kan., ($2,500)
* XL Specialty Insurance Co., Stamford, Conn., ($1,500)
* Young America Insurance Co., Dallas, Texas, ($1,125)

Penalties and fines collected by the Insurance Commissioner are deposited in the state’s General Fund, where the dollars are used to fund programs for Washington residents. The agency collected a total of $2.2 million in enforcement fines in 2006.

For details of the enforcement actions and fines, visit http://www.insurance.wa.gov/industry/enforcement.asp.

Source: OIC