April 7, 2010                                                         Contact:Lucas Hamilton

Lindeen enters agreement with Assurant Health to pay claims


      Montana Commissioner of Securities and Insurance Monica Lindeen has entered into a consent agreement with health insurers John Alden Life Insurance Company and Time Insurance Company, affiliated companies doing business as Assurant Health in Montana.
      
      In the agreement, Assurant Health was required to revise its policy forms for small employer group health coverage to clearly provide all benefits required by Montana law. The company was found to be operating in violation of the law by not including coverage for prenatal care and pregnancy, newborn infants within the first 31 days after birth without additional premium charges, mammography, reconstructive breast surgery, diabetes management and care, and severe mental illness.
      
      As a result, Assurant Health paid $39,569.76 in claims for the specified benefits and refunded $59,560.38 in premiums improperly charged for newborns. The Commissioner also imposed a fine of $225,000 on Assurant Health for the violations. By law, the fine will be deposited in the state of Montana's general fund account.
      
      Commissioner Lindeen states, "This agreement resolves several long-standing issues. Through the process, Assurant Health cooperated with my office to pay back consumers who were harmed and to correct their policy forms for future business."
      
      The consent agreement is posted on the Commissioner's website at www.csi.mt.gov.