A Texas-based insurance company is facing a $275,000 penalty in North Dakota after regulators probed the company’s claim-settlement practices.
North Dakota Insurance Commissioner Adam Hamm says an investigation revealed that American National Insurance Co. failed to follow regulations regarding guaranteed issue coverage.
Guaranteed issue in credit life insurance or credit disability insurance is the minimum benefit amount an insurer must issue regardless of the policyholder’s health status.
The guaranteed issue amount required by North Dakota law is $5,000 for both credit life insurance and credit disability insurance.
Hamm says the insurer “systematically failed to follow the law over the course of many years.” He adds the insurer has also been ordered to reimburse all affected consumers.
The insurer did not immediately return a call seeking comment on the fine and reimbursements.
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