BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced a $1.3 million agreement Wednesday with an insurance company that allegedly sold and marketed unauthorized health insurance products that failed to cover mandated benefits.

The Iowa-based Transamerica Life Insurance Company allegedly sold health insurance policies that were not authorized for sale to Massachusetts consumers. Transamerica also allegedly violated the state's Consumer Protection Act by failing to cover health services required by state law, including mammography, pap test screening, mental health and preventive care for children up to the age of six.

"Massachusetts consumers should be confident that the health insurance they purchase complies fully with the law," Coakley said. "Our office will continue to vigorously pursue health insurers that sell unauthorized insurance or fail to pay benefits mandated by law."

Under the terms of a consent judgment that was filed with the complaint on March 5 and approved on Friday, Transamerica must pay $1,330,000 to the state and consumers. The payment includes $750,000 in relief for consumers who were sold the plans or were denied insurance coverage for mandated benefits, $250,000 in civil penalties, $300,000 for the Local Consumer Aid Fund and $30,000 for attorney costs.

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