- Associated Press - Wednesday, June 3, 2015

BISMARCK, N.D. (AP) - A Texas-based insurance company is facing a $275,000 penalty in North Dakota after regulators probed the company’s claim-settlement practices.

North Dakota Insurance Commissioner Adam Hamm says an investigation revealed that the insurer failed to follow regulations regarding guaranteed issue coverage.

Guaranteed issue in credit life insurance or credit disability insurance is the minimum benefit amount an insurer must issue regardless of the policyholder’s health status.

The guaranteed issue amount required by North Dakota law is $5,000 for both credit life insurance and credit disability insurance.

Hamm says the insurer “systematically failed to follow the law over the course of many years.” He adds the insurer has also been ordered to reimburse all affected consumers.

The insurer did not immediately return a call seeking comment on the fine and reimbursements.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide