Agrees to $2.3 million fine
CARMEL, Ind., May 7 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO)
today announced a settlement among state insurance regulators and two of
its insurance subsidiaries: Conseco Senior Health Insurance (CSHI) Company
and Bankers Life and Casualty Company. The settlement concludes a
multistate market conduct examination led by Pennsylvania, Illinois,
Indiana, Texas and Florida related to long-term care claims practices and
procedures, complaint handling, and sales and marketing practices.
Under the agreement:
-- Conseco will pay a fine of up to $2.3 million, with an additional $10
million in the event Conseco fails to meet the process improvement
benchmarks over the next two-and-a-half years.
-- Conseco will review certain claims from 2005-2007 and provide up to $4
million of remediation.
-- Conseco will implement a detailed process improvement plan designed to
achieve performance standards for the timely processing of claims and
complaints and other processes, as part of an improvement program
undertaken by the company in 2007. Under that program, Conseco is
moving several long-term care back-office functions to the Long-Term
Care Group, Inc. to better manage the CSHI business and improve
customer service, and Conseco is investing $26 million on systems
enhancements and business process improvements over the next
two-and-a-half years. The plan will be monitored by the lead states.
"Conseco encouraged and fully supported this exam, especially in light
of industry policymakers' focus on senior marketplace issues relating to
|SOURCE Conseco, Inc.|
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