Insurer reaches deal with Mass. AG over allegations of selling unauthorized health insurance

By Emily Moore | Oct 5, 2015


BOSTON (Legal Newsline) - The Insurance Company of the State of Pennsylvania will pay $430,000 to consumers and the state of Massachusetts to settle allegations of selling unauthorized health insurance and failing to cover state-mandated benefits.

“Consumers purchasing health insurance should be confident that their policies comply with state law,” Massachusetts Attorney General Maura Healey said in a statement.

“Companies that sell unauthorized health insurance or fail to cover essential benefits mandated by law, such as behavioral and women’s health services, must be held accountable to consumers.”

According to the lawsuit, filed in Suffolk Superior Court, ICSOP sold unauthorized health insurance policies to consumers.

The complaint also included allegations that ICSOP violated consumer protection laws by failing to cover certain benefits required by state law. The denied benefits include behavioral health services and several women and children’s health benefits such as pap tests, mammography, contraception and preventative care for newborns and children.

In accordance with the settlement, ICSOP will pay $355,000 for consumer relief; $75,000 to the Massachusetts Local Consumer Aid Fund; and $15,000 to cover the costs of the investigation.

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