For Immediate Release - September 15, 2015

Insurance Company to Pay $430,000 Over Claims of Selling Unauthorized Health Insurance to Consumers and Failing to Cover Mandated Benefits

BOSTON – The Insurance Company of the State of Pennsylvania (ICSOP), a subsidiary of AIG, has agreed to pay $430,000 to settle allegations that it sold unauthorized health insurance to Massachusetts consumers and failed to cover mandated benefits required by state law, Attorney General Maura Healey announced today.

According to the complaint, filed Monday along with the consent judgment in Suffolk Superior Court, ICSOP sold health insurance policies to consumers that were not authorized for sale. The complaint also alleges ICSOP violated the state’s consumer protection laws by excluding coverage of certain health services required by Massachusetts law, including behavioral health, “pap” test screening, mammography, contraception and preventive care for newborns and children up to age six.

“Consumers purchasing health insurance should be confident that their policies comply with state law,” AG Healey said. “Companies that sell unauthorized health insurance or fail to cover essential benefits mandated by law, such as behavioral and women’s health services, must be held accountable to consumers.”

Under the terms of the consent judgment, approved by the Court on Monday, ICSOP must pay $430,000, including $355,000 for consumer relief and $75,000 to the Commonwealth, composed of $60,000 for the Local Consumer Aid Fund and $15,000 for the costs of the investigation.           

Consumers concerned about illegal health insurance practices in Massachusetts are urged to call the Attorney General’s Health Care Helpline at (888) 830-6277. Guidance on how to choose a health plan is also available on the Attorney General’s website

This matter was handled by Assistant Attorney General Emiliano Mazlen of Attorney General Healey’s Health Care Division with assistance from Division Chief Karen Tseng.