The agreement stems from claims of selling unauthorized health insurance to consumers
AIG Subsidiary, the Insurance Company of the State of Pennsylvania (ICSOP) and Attorney General Maura Healy’s Office entered into a settlement agreement this week in which the insurer will pay $430,000 to settle allegations that it sold unauthorized health insurance to Massachusetts consumers as well as failing to cover mandated benefits required by state law.
“Consumers purchasing health insurance should be confident that their policies comply with state law,” AG Healey said. “Companies that sell unauthorized health insurance or fail to cover essential benefits mandated by law, such as behavioral and women’s health services, must be held accountable to consumers.”
According to the complaint filed along with the consent judgment in Suffolk Superior Court, the Insurance Company of the State of Pennsylvannia (“ICSOP”) sold health insurance policies that it was not actually authorized to sell. In addition, ICSOP allegedly violated the state consumer protection law by excluding coverage for certain health services which are required by Massachusetts law. Among the health services that must be covered by law are behavioral health, “pap” test screening, mammography, contraception, and preventive care for newborns and children up to age six.
ICSOP sold health insurance policies to consumers that were not authorized for sale. The complaint also alleges ICSOP violated the state’s consumer protection laws by excluding coverage of certain health services required by Massachusetts law, including behavioral health, “pap” test screening, mammography, contraception and preventive care for newborns and children up to age six.
Pursuant to the terms of the Court-approved consent judgment, ICSOP is required to pay $430,000, of which $355,000 will be directed towards consumer relief. The remaining $75,000 will be paid to the Commonwealth of which $60,000 will be given to the Local Consumer Aid Fund and $15,000 put towards the costs of the investigation.