Three subsidiaries of Assurant Health will provide refunds to small group health insurance policyholders that Indiana insurance regulators say the companies overcharged.
Indiana Insurance Commissioner Stephen W. Robertson announced in mid-May that the subsidiaries — Time Insurance Co., Union Security Insurance and John Alden Life Insurance Co. — will refund collected premium dollars to Indiana small group health insurance policyholders and immediately reduce rates charged to small businesses.
An investigation revealed Assurant’s companies were charging small businesses rate increases since October 2010 that had not been approved by the Indiana Department of Insurance, according to the insurance department’s announcement.
Assurant will refund premiums to approximately 600 individual small businesses within 90 days of the execution of the agreement. The refunds will total $2.75 million.
Subsequent to Assurant’s 2007 form filing the Indiana Department of Insurance exercised the authority given to it by the state Legislature to review health insurance rates. In reviewing rates, the department considers the rate justification provided by the company and determines independently if the company’s filing is sound and justified.
Because Assurant’s policy forms had been on file since 2007, Assurant believed that its renewal rates were not subject to review by the department. After being contacted by regulators, Assurant worked out the agreement to refund employers.
Source: Indiana Department of Insurance