Business

Texas insurer pays $20 million fine

NEWS IN BRIEF — Posted Aug. 11, 2008

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HealthMarkets Inc., an insurance company based in North Richland Hills, Texas, that markets heavily to the self-employed, is set to pay at least $20 million to insurance regulators in at least 29 states. The settlement was announced by the states and the National Assn. of Insurance Commissioners. Three of HealthMarkets' subsidiaries were subject to a multistate investigation of sales practices covering 2000 to 2005.

Regulators found that HealthMarkets failed to adequately train its agents, inform customers of the details of their coverage and properly handle complaints.

Under the settlement agreement, the company neither admits nor denies wrongdoing.

Other states have until Aug. 18 to join the agreement.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/08/11/bibf0811.htm.

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