NYDFS settled with several insurers that offer student health plans, alleging a number of violations. According to the DFS allegations across the four consent orders:
• DFS found that four insurers – 4 Ever Life Insurance Co., Aetna Life Insurance Co., United Healthcare Insurance Co., and Wellfleet NY Insurance Co. — charged unapproved premium rates to students covered under blanket health insurance contracts with institutions of higher learning, thus possibly gaining an unfair competitive advantage in the relevant insurance market.
• 4 Ever Life Insurance Company will pay a civil penalty of $300,000; Aetna Life Insurance Company will pay a penalty of $2,750,000 and will reimburse $1,650,139 to students; United Healthcare will pay a penalty of $1 million and will reimburse a total of $1,379,625 to students; and Wellfleet will pay a penalty of $500,000 will reimburse students $84,333.
• Note that these matters were investigated and prosecuted within the Insurance Division, and not the Enforcement Division, as has been common practice for most insurance enforcement actions since the inception of DFS.