A New York, N.Y.-based health insurance company must pay $760,000 in restitution for selling unauthorized health insurance in Massachusetts.
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Martha Coakley
United States Life Insurance Co., a subsidiary of American International Group (AIG), must pay full restitution and payments to the commonwealth for selling and marketing illegal health insurance products to Massachusetts consumers, according to the office of Massachusetts Attorney General Martha Coakley.
“When Massachusetts consumers buy health insurance, they should be able to feel confident that the coverage complies fully with Massachusetts law,” Coakley said in a statement.
U.S. Life must pay a total of $760,000. Authorities said $500,000 will be set aside to refund premiums and pay claims to consumers for mandated services, and $260,000 to be paid to the commonwealth.
The company sold health insurance policies in Massachusetts that were not authorized for sale, the attorney general’s office reported. The office also alleged that U.S. Life did not cover health services required by Massachusetts law. The mandated services in question include mental health, maternity health care, infertility care, pap test screening, mammography and preventive care for children up to age six.
U.S. Life also violated the state’s Consumer Protection Act by marketing health insurance that was not authorized for sale and by denying mandated benefits to Massachusetts residents, according to the attorney general’s office.
Insurer to pay $760,000 for selling unauthorized health coverage via IFAwebnews .
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