Insurer to Pay Mass. $1.7M for Deceptive Marketing
BOSTON (AP) — Massachusetts Attorney General Martha Coakley has announced that an insurance company will pay more than $1.7 million for allegedly improperly marketing cancer and surgical insurance to more than 1,000 Massachusetts veterans, most from World War II.
A complaint and consent judgment filed Monday in Suffolk Superior Court alleges that Life Insurance Company of North America violated state consumer protection laws through deceptive practices in the marketing and administering of insurance products to veterans, including misrepresenting its insurance as a government veteran’s benefit and exaggerating benefits.
Coakley said Tuesday the money will be used to pay restitution and for veterans programs.
The Philadelphia-based company said it agreed to pay a fine “to avoid costly and time-consuming litigation.” The company said it voluntarily discontinued a previous billing practice well before receiving notice of Coakley’s investigation.
(Copyright 2012 by The Associated Press. All Rights Reserved.)