Iowa Expecting $500,000 From National Union Fire Insurance Settlement
By Dave DeWitte, Reporter
CEDAR RAPIDS, Iowa - Iowa will get part of a $49 million-plus regulatory settlement between state insurance commissioners and National Union Fire Insurance Co.
Iowa Insurance Commissioner Susan Voss announced the settlement, reached between the insurance companies and a team of state regulators led by Iowa and Ohio, late Wednesday.
The settlement followed a review of the company's practices in selling accident and health insurance for 2009 and 2010. Voss did not offer any specifics of the violations, but American International Group (AIG), the parent company, said in a 2011 SEC filing that it relates to " "rate and form issues, producer licensing and appointment and vendor management."
In addition to the fine, the agreement calls for corrective action and monitoring of the company's activities over the next two years.
The insurance company is required to develop a plan to concentrate on improvements in 13 areas of company operations and meet specific deadlines for implementing required changes during the first six months of the two-year monitoring period.
A total of 41 states were part the agreement. Iowa is expected to receive between $460,000 and $540,000 depending on the final number of states joining in the agreement.