New York State
INSURANCE DEPARTMENT REQUIRES CONTINENTAL CASUALTY
COMPANY TO REFUND MORE THAN $200,000 TO ITS POLICYHOLDERS
New York, February 2, 1999
Superintendent of Insurance Neil D. Levin today announced that the Department is requiring Continental Casualty Insurance Company, a member of the CNA group, to refund 368 policyholders a total of $204,000. The company had overcharged the policyholders on a group disability income policy.
An investigation by the Department found that the company overcharged dentists an average of $550 each for a group disability income policy purchased through the Dental Society of New York. The investigation also revealed that Continental Casualty had been using unapproved policy forms and certificates. As the result of the Departments investigation, the company paid a $125,000 fine in June 1998. The company is also required to review how the unapproved rates affected policyholders and take necessary corrective actions.
"We are pleased that our enforcement actions will result in the return of more than $200,000 back to where it belongs: into the pockets of policyholders who were erroneously overcharged," said Levin. "We will continue to use all of our enforcement powers to ensure consumers are being properly treated."
Continental Casualty will begin making the refunds March 1, 1999.