North Dakota Commissioner Jim Poolman recently imposed an $8,000 penalty against Blue Cross Blue Shield of North Dakota (BCBS) as a result of a market conduct exam that revealed various infractions of administrative rules specific to the marketing of Medicare supplement insurance policies.
Poolman said, “The market conduct examination process ensures that insurance companies are marketing their products fairly and are disclosing the required information to insurance consumers.”
Two areas were the basis for the penalties:
BCBS was not providing required notices to customers that were replacing existing Medicare supplement policies;
BCBS failed to update both Medicare supplement applications and the Medicare supplement replacement notice to comply with North Dakota administrative rules.The required notices are beneficial to a consumer because they ensure that the purchaser is not duplicating existing coverage and is purchasing the replacement policy for a valid reason, such as a lower premium or additional benefits.
Blue Cross Blue Shield has waived its right to an administrative hearing regarding the matter and has agreed to the Insurance Department’s findings outlined in the consent order.
Source: North Dakota Department of Insurance
Was this article valuable?
Here are more articles you may enjoy.