New York State
Insurance Department


ISSUED: 1/24/2001

FOR IMMEDIATE RELEASE

DEPARTMENT FINES COMMUNITY HEALTH PLAN $1 MILLION
FOR INSURANCE LAW VIOLATIONS

             Superintendent of Insurance Neil D. Levin today announced that the Department has fined Community Health Plan $1,000,000 for violations of the New York State Insurance Law. These violations occurred during the period from January 1, 1994 to December 31, 1998.

            According to a stipulation executed in conjunction with the fine, the company violated the Insurance Law by the following conduct:

1. Violation of certain Insurance Law provisions related to the "prompt payment" of claims by:

2. Violation of the certain Insurance Law provisions related to the Board of Directors investment     responsibilities by:

3. Violations of certain Insurance Law provisions related to transactions with its parent company by:

             In addition to paying the fine, the company stated that the interest on late claims had been paid and they confirmed their compliance with the requirements of the Law during the completion of their market withdrawal. Community Health Plans announced their withdrawal from the northeast region, which included New York State in 1999.


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