New York State
Insurance Department


ISSUED: JANUARY 6, 2000

FOR IMMEDIATE RELEASE


DEPARTMENT FINES GUARDIAN LIFE INSURANCE

COMPANY OF AMERICA $250,000 FOR INSURANCE LAW VIOLATIONS

       Superintendent of Insurance Neil D. Levin today announced that the Department has fined Guardian Life Insurance Company of America $250,000 for violations of the New York State Insurance Law. These violations occurred during the period from January 1, 1990 to December 31, 1994.

       According to the stipulation, the company violated the Insurance Law and Department regulations by the following conduct:

  • Failing to pay settlement interest on matured policies;
  • Failing to pay interest on policies surrendered for cash values; and
  • Failing to maintain many of its files pertaining to policy surrenders in a manner which permitted the Department examiners to determine the dates of receipt of surrender documents and the dates of relevant communications and transactions.

       In addition to paying the fine, the company has agreed in the stipulation to pay interest owed to policyholders pursuant to a remediation plan, and to put corrective measures in place, including programs and procedures that will ensure future compliance with all Department regulations.


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