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American Fidelity Assurance to pay more than $200,000 in settlement

By Mark Iandolo | Dec 11, 2015


BOSTON (Legal Newsline) - American Fidelity Assurance Company (AFA) will pay $209,000 to settle allegations that it didn’t cover mandated benefits required by state law and sold unauthorized health insurance to consumers in the state.

Massachusetts Attorney General Maura Healy recently announced the settlement.

“Massachusetts residents should be confident that their health insurance policies comply with state law,” Healey said. “We will continue to hold accountable companies that engage in illegal insurance practices and fail to provide important health care services for families who need them.”

The complaint, filed along with consent judgment in Suffolk Superior Court, claims that AFA violated consumer protection laws. The company excluded coverage of various health services that the state requires, the state claims.

Specifically, the complaint claims behavioral health, “pap” test screening, mammography, contraception and preventative care for newborns and children were not covered by AFA.

The consent judgment, approved by the court, states that AFA must pay $209,000, including $134,000 in consumer relief and $75,000 to the Commonwealth. This includes $60,000 for the Local Consumer Aid Fund.

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Massachusetts Attorney General's Office