The settlement provides restitution to consumers affected by the company’s practices
In response to claims that it failed to properly issue cancellations notices to over 100 Massachusetts life insurance policyholders, the Hartford Life and Accident Insurance Company has agreed to pay the Attorney General of Massachusetts $145,000 to resolve all allegations.
“People depend on life insurance for critical support in often incredibly difficult circumstances,” said AG Healey. “It’s important that people have clear, accurate information about the status of their policies. We are pleased that this settlement will provide restitution to consumers harmed by this company’s practices.”
According to the assurance of discontinuance filed in Suffolk Superior Court, more than 100 Massachusetts residents were sent improper cancellations from Hartford Life & Accident. The AG’s Office claims the insurer’s actions violated Massachusetts consumer protection laws as a result. All of the affected consumers were insured by Hartford Life & Accident via a group policy.
As part of the settlement agreement, Hartford Life & Accident also has agreed to reissue the cancellation notices with a new termination of coverage date in addition to paying the fine. It also will offer the affected consumers the option to convert their coverage under the group policy to an individual policy “without proof of insurability.” Finally, the company will give policy beneficiaries the right to file a claim that may arise up to 60 days from the date of the notices.
The Attorney General’s Office noted that $120,000 of the $145,000 that Hartford Life & Accident will pay will be returned to consumers in connection with claims identified during the investigation. The remaining $25,000 will be paid to the Commonwealth.
