WellPoint subsidiary fined for improper rates and coverage rules

NEWS IN BRIEF — Posted Feb. 13, 2012

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Washington State Insurance Commissioner Mike Kreidler has fined WellPoint subsidiary UniCare $100,000 for violating three state laws in the sale of insurance policies for international students.

In a consent order signed in January, the company was found to have used unapproved methods to set rates, allowed unlicensed insurance brokers to sell the policies, and used a coverage exclusion for injuries and illness caused by intoxication that was outlawed in Washington state in 2004.

The violations were found to have occurred beginning in 2003 and in some cases until 2011.

UniCare did not admit or deny wrongdoing. UniCare spokesman Chris Dugan said the company has been working to fix the problems since the consent order was signed.

"The process is now concluded, and the issues have been completely addressed," he said in a statement.

Note: This item originally appeared at

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