The AG’s office says the company provided incorrect coverage information to consumers
The Attorney General’s office announced that The John Hancock Life Insurance Company will pay more than $40,000 to settle allegations that it furnished erroneous information to its policyholders who had inquired about their coverage under certain long-term care policies.
“Consumers must receive accurate information so that they can avoid being trapped in a policy that doesn’t best provide for their needs,” explained Attorney General Coakley in a written statement. “We are pleased that John Hancock has agreed to provide full coverage and restitution to the consumers who were misinformed.”
It is believed that a total of nine consumers were provided with the erroneous information which resulted in them keeping their policies in place prior to entering an assisted living residence. The AG’s office alleges that the erroneous forms John Hancock provided to these policyholders stated that the coverage under their policies would provide them with an Assisted Living Residence Daily Benefit equal to 100 percent of the policyholder’s Home Health Care Daily Benefit. Upon entering the facilities, however, the policyholders learned that they were to receive an 80 percent coverage level rather the 100 percent coverage assured them by John Hancock earlier.
As a result of an investigation into these allegations, the AG’s Office filed an assurance of discontinuance in Suffolk Superior Court on June 26, 2013 stating that it is believed that a technical error with John Hancock’s policy production system was the cause of the erroneous information which ultimately ended up sending incorrect forms to these policyholders and misinforming them of the coverage levels their polices had for assisted living residences.
Under the terms of the settlement agreement, John Hancock has agreed to provide the nine policyholders with the right to receive the retroactive reimbursements totaling more than $40,000 which will result in them attaining 100 percent coverage. The life insurance company has also agreed to settle any future similar claims in the same manner.
