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FOR IMMEDIATE RELEASE STATE INSURANCE REGULATORS IMPOSE MULTI-MILLION
DOLLAR ASSESSMENT KANSAS CITY , Mo. (Sept. 7, 2007) — State insurance regulators, working together through the National Association of Insurance Commissioners (NAIC), today announced the details of a regulatory settlement agreement between 36 states, the District of Columbia and United Healthcare Insurance Company over alleged violations of state law involving claims-payment services. “By working collaboratively, state insurance regulators have proven that we can protect consumers and maintain a strong regulatory system,” said NAIC President and Alabama Insurance Commissioner Walter Bell. “This agreement clearly demonstrates that state insurance regulation, on both a state and national level, is sucessful and effective.” The states of Arkansas, Connecticut, Florida, Iowa and New York led the negotiations for the settlement. Areas of concern included claims handling and other state administrative practices, which were reviewed through a series of state-led market conduct examinations. United Healthcare has agreed to pay an assessment of up to $20 million to the states. In addition, United Healthcare has agreed to implement a detailed three-year process-improvement plan in regard to their claims-payment system, including quarterly reviews and yearly benchmarks. In the event United Healthcare fails to meet the yearly process-improvement benchmarks, an additional assessment of up to $20 million could be levied against the company. To date, jurisdictions that have adopted the agreement include: Alabama, Alaska, Arkansas, California, Connecticut, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia and Wyoming. Click here for a complete copy of the regulatory settlement agreement.
About the NAIC Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm.
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©2007 National Association of Insurance Commissioners. All rights reserved. | ||
