Bankers Life and Casualty Co. agreed to pay over three million after, an examination revealed it's fraudulent practices involving its claims. In addition to the more than three million dollar fine, Bankers Life and Casualty Co. will pay $800,000 to the lead regulators on the case for costs related to the re-examination. Regulators conducted a market examination report on Bankers Life and Conseco Senior Health Insurance Co., its former sister company. At that time, authorities found that pending claims were not investigated in a timely manner and that claim files were not properly documented or kept.
As part of the recent settlement, regulators required certain corrective actions for the companies to take. In that agreement, insurance officials also said they would conduct a re-examination of Bankers Life. In 2010, Bankers Life still hadn't revised its procedures to ensure that claims were paid and that claim investigations were completed in a timely manner.
Bankers Life also failed to update its underwriting practices to ensure complete and accurate applications, and the insurer did not revise its maximum-benefit claim denial letters to include details of a restoration of benefits provision in the contract. Authorities in Pennsylvania indicated that the noncompliance had an impact on the carrier's annuities, long-term-care insurance and life insurance businesses. The company neither admitted nor denied the regulators' findings.