The Insurance Company of the State of Pennsylvania, a subsidiary of AIG, has agreed to pay $430,000 to settle allegations it sold unauthorized health insurance to consumers in Massachusetts, according to the Massachusetts Attorney General's Office.
The complaint against the insurance company along with the consent judgment was filed in Suffolk Superior Court on Monday. The complaint alleged ICSOP sold health insurance policies to consumers that were not authorized for sale. The complaint further alleged the insurance company sold policies that excluded coverage for certain health services required by Massachusetts law, including contraception and behavioral health services.
Commenting on the consent judgment, Massachusetts Attorney General Maura Healy said, "Consumers purchasing health insurance should be confident that their policies comply with the law. Companies that sell unauthorized health insurance or fail to cover essential benefits mandated by law…must be held accountable to consumers."
The majority of the settlement proceeds ($355,000) will go toward consumer relief, while $75,000 will be paid to the commonwealth.
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