NYDFS took an enforcement action against another insurance company, this time John Hancock Life Insurance Company. According to NYDFS findings, John Hancock prematurely terminated 156 NYS Partnership long term care policies prior to insureds exhausting benefits to which they were entitled, and miscalculated lifetime maximum benefits in cases when insureds used less than the maximum daily benefits under their policies. The premature termination of coverage allegedly occurred between February 2001 and July 2019 and resulted in 27,161 days of unpaid benefits. Here are some enforcement takeaways:
- The civil monetary payment includes a $21.6 million restitution payment, a$2.2 million payment to New York Medicaid, and a $2.5 million penalty to NYDFS.
- The investigation arose from single consumer complaint about premature termination of long term care policies.
- Almost all insureds subject to the conduct had passed away by the time the investigation concluded.
The consent order may be found here: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202208181