Health insurer, Life
Insurance Company of North America (LINA) – an operating subsidiary
of US health insurer Cigna – has been ordered to pay more than
$1.7m for allegedly using deceptive marketing practices.

The sum will be paid to
consumers and the state government of Massachusetts for allegedly
improperly marketing its cancer and surgical insurance to more than
1,000 Massachusetts veterans, including specifically targeting
World War II veterans.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

A complaint by Martha
Coakley, the attorney general of Massachusetts, filed along with a
consent judgment in Suffolk Superior Court alleged that LINA
violated the state’s Consumer Protection Act through several
deceptive practices in the marketing and administering of its
supplemental health insurance products to Massachusetts
veterans.

For example, LINA is
alleged to have:

 

  • misrepresented its insurance as a
    governmental veteran’s benefit,

 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
  • illegally denied coverage based on
    pre-existing conditions

 

  • made false claims about rates

 

  • exaggerated benefits

 

  • and misrepresented coverage
    limits.

 

Coakley said: “The
conduct in this case is greatly disconcerting because LINA
specifically targeted World War II veterans who deserve our
deepest gratitude for their service to our country.”

Under the terms of the,
consent judgement, LINA will pay a minimum of $650,000 in consumer
relief for Massachusetts residents who were sold the insurance
plans through allegedly deceptive means.

 

Deterrent
factor

It must also pay an
additional $1 million to state government of Massachusetts as a
deterrent, $500,000 of which is for civil penalties and $500,000
will be used to promote initiatives designed to assist
Massachusetts military veterans, seniors, or residents with mental
health conditions, or to address unlawful marketing practices
targeted at such individuals.

LINA will also pay the
state government of Massachusetts $55,000 for the costs of the
investigation.

LINA has decided to
terminate these plans in Massachusetts and the consent judgment
requires LINA to give proper notice of that termination.