AG Alleges Senior Life Used Deceptive Mailers With Massachusetts Residents
The Massachusetts Attorney General’s Office has announced a settlement with Senior Life Insurance Company following an investigation into the company’s advertising practices. The investigation alleged that Senior Life circulated deceptive mailers to Massachusetts residents between 2018 and 2021.
Attorney General’s Allegations
According to the Attorney General’s Office, Senior Life distributed advertisements to Massachusetts residents that were formatted and worded to suggest the company’s affiliation with a government agency. The mailers allegedly implied that recipients had an “entitlement” to government or non-government benefits. Also, according to the Attorney General, the mailers suggested a connection to official tax documentation by shading two digits in a four-digit year.
Furthermore, the Attorney General’s Office alleged that Senior Life misrepresented material facts about the services or goods offered, including the total cost to purchase, receive, or use the good or service, as well as any material restrictions, limitations, or conditions to purchase or receive the service or good.
Assurance of discontinuance under General Laws Chapter 93A
Under Section 5 of Chapter 93A, instead of instituting a court action, the Attorney General may accept an assurance of discontinuance from any person alleged to have violated the consumer protection law. The assurance must be in writing and filed with the Suffolk Superior Court. The assurance of discontinuance may include terms such as:
- A stipulation for the voluntary payment of investigation costs by the violator.
- Payment of an amount to be held in escrow pending an action or as restitution to aggrieved consumers.
- A commitment to cease unlawful practices.
The Attorney General can reopen a matter closed by an assurance of discontinuance for further proceedings if deemed in the public interest. Any evidence of violating the assurance is prima facie evidence of violating Chapter 93A in any subsequent proceeding.
Payment under the terms of the Assurance of Discontinuance
In Senior Life’s case, in recognition of Senior Life’s cooperation, the Attorney General’s Office agreed to accept an Assurance of Discontinuance (AOD) under c. 93A to resolve the matter.
Under the terms of the AOD, Senior Life will pay $50,000 to the Commonwealth’s General Fund.
Future conduct prohibited to Senior Life
The AOD also prohibits Senior Life from engaging in practices that may mislead consumers, such as suggesting any affiliation, endorsement, or connection to government agencies or public benefits programs, implying that recipients have an “entitlement” to benefits, formatting materials to evoke a connection to tax documentation, and misrepresenting material facts about the services or goods offered.
Additionally, Senior Life must include a clear and conspicuous disclosure in its advertisements and marketing materials stating that it is a private insurance company with no affiliation, endorsement, or connection to any government agency or public benefits program.
Assurance of discontinuance avoids 93A action by Attorney General
The AOD represents the complete agreement between the Attorney General’s Office and Senior Life Insurance Company. By signing the AOD, Senior Life agrees to comply with its terms, and the Attorney General’s Office agrees not to proceed with a civil action under Chapter 93A against Senior Life for prior acts related to the allegations.
Assistant Attorney General handling the Senior Life AOD
Assistant Attorney General David Lim from the Attorney General’s Insurance and Financial Services Division handled the Senior Life assurance of discontinuance.
