The California Department of Insurance has announced that Life Insurance Company of North America has agreed to a $600,000 settlement to resolve charges it mishandled disability claims.
“Individuals purchase long term disability insurance to protect themselves and their families in the event they become disabled and are unable to work,” California Insurance Commissioner Steve Poizner sai in a statement. “When insurance companies fail to follow the law in fairly and expeditiously adjusting these claims, it has a devastating impact on policyholders and their families. I am pleased that LINA (Life Insurance Company of North America) has taken responsibility for its actions and has implemented changes in its policies, procedures and practices. The Department will continue to monitor the actions of all insurers selling and marketing disability insurance in the state of California.” (more…)
