Insurance company to pay $1.1M for claims violations
RALEIGH, NC (AP) — A life insurance company has agreed to a $1.1 million penalty after North Carolina regulators found claims processing violations and delays.
State Insurance Commissioner Mike Causey announced a voluntary settlement agreement with Gerber Life Insurance Co., which is also paying $2.5 million in additional recoveries and interest to claimants.
The department says an examination of 300 claims from over seven years revealed many violations with Gerber Life’s accidental death and dismemberment policies.
Causey’s office says the violations included demanding unnecessary documentation and failing to pay interest on delayed claim payments.
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