The Missouri Department of Insurance announced Friday a regulatory settlement agreement has been reached with Humana Insurance Co. that will, among other things, provide more than $390,000 to the Missouri State School fund.
Missouri regulators collaborated with those in Mississippi and Wisconsin to lead a multistate market conduct investigation of Humana starting in 2012, resulting in a settlement where Humana has agreed to pay $1.8 million in fines, to be divided among 10 states, and to establish a $2.7 million consumer restitution pool.
The investigation, which began with a single complaint to a Missouri state agency, found that Humana Insurance Company was requiring some employers, who purchased small group medical insurance, to also purchase a group life insurance product. In the settlement, Humana agreed to make business reforms to include notifying employers and insurance agents that the additional purchase of life insurance is not required.
"Policyholders should be able to choose individual insurance products without insurers bundling products together," said Missouri Insurance Director John M. Huff. "I am pleased our team was able to collaborate on a settlement with multiple states to benefit consumers."
Consumers who have complaints or questions about life and other types of insurance, can call the department's Insurance Consumer Hotline at 800-726-7390 or visit insurance.mo.gov.