Frankel & Newfield represents many CIGNA clients, so we were not surprised to see that insurance regulators in Connecticut and four other states were also at issue with the disability insurance company over improper handling of long-term disability claims. We believe that the size and scope of the settlement – $77 million and five states – is a clear indication of how Cigna conducts its disability claims business.
Regulators in Connecticut, California, Maine, Massachusetts and Pennsylvania examined the claims process of Cigna and its subsidiaries, including Life Insurance Company of North America (LINA), Connecticut General Life Insurance Co. and CIGNA Health and Life Insurance Co.
The Insurance Commissioners initiated targeted market conduct examinations and found that the claims handling practices were not in compliance with the laws that establish standards for insurance companies nor did they follow the guidelines set by state insurance commissioners.
As a result of the settlement, Cigna and its related companies are reevaluating certain claims. The companies are required to take the following actions:
- Establish a remediation program so that the enhanced claim procedures will be applied to certain previously denied or adversely terminated claims for residents in Connecticut, California, Maine, Massachusetts and Pennsylvania.
- Participate in a 24 month monitoring run by the five states that will incorporate random sampling and on-going consultation.
- Undergo a re-examination upon completion of the monitoring period.
- Pay fines and administrative fees totally $1.6 million, with Connecticut will receive $150,000 in fees to monitor compliance.
Read the Regulatory Settlement Agreement here.
If you are having or have had a problem with a Cigna disability insurance policy, we have many years of experience and can help. You are invited to call our office today at 877-LTD-CLAIM (877-583-2524) to learn how we have helped others with Cigna disability claims and how we can help you.
Learn more about our representation of Cigna policy owners here.