Posted by (American Life InsuranceGuidance News) The California Insurance Bureau has received a large number of complaints against two life insurance companies, accusing the two life insurance companies of not sending bills and annual reports to policyholders and allowing them to terminate their insurance policies.The Office of California Insurance Commissioner Dave Jones believes that the two life insurance companies failed to fulfill the promises in the policy and therefore will face litigation.
California Insurance Commissioner Dave Jones prepares to sue the two insurance companies
Failed to fulfill the promise of serving the people
The complaints of these customers also included the two insurance companies not providing digital channels to log in to their accounts, as well as mishandling the insurance premium payments of policyholders.
There are also complaints about repeated deductions or repeated checks from the bank, resulting in overdraft fees for the user's bank account.
The two companies operating life insurance products in California are:
- Accordia Life & Annuity Co. [Company Reviews]
- Athene Annuity & Life Co. (Athene Annuity & Life Insurance Company)
California Insurance Bureau prepares to go to court
California Insurance Commissioner Dave Jones has received more than 100 complaints about these two companies.And he believes that far more customers are affected than this number.Currently, these twoLife insurance companyOver 50,000 life insurance policies have been underwritten in California.
Therefore, his department is taking this issue to court.
Apply for an order to suspend business for rectification and issue a notice to correct the problem
"This is a series of very severe measures," Jones said in an interview. "In California, we attach great importance to protecting consumers. When insurance companies violate these regulations, we will take active actions to protect consumers."
AccordiaParent companyGlobal Atlantic Financial Group (Chinese temporary translation: Global Atlantic Financial Group)It said in a statement that it is investigating the matter and will cooperate with the Insurance Bureau to "resolve the matter."
The reason behind the chaos
This problem planted the bane in 2013.According to a legal complaint from the Insurance Bureau, that yearAccordiaIndirectly acquired 50 nationwide life insurance policies from Athene, of which 5 policies were issued in California.
The relevant authorities stated that the policyholders had received notice of the acquisition and asked if they would like to transfer the policy from Athene toAccordia.The policy of the person who refuses to transfer can stay in Athene, but the management of the policy will be managed by Accordia.
But according to the complaint from the Insurance Department,AccordiaEncountered "substantial difficulties" from the very beginning.
The complaint stated that Accordia relied on a third-party company to manage its life insurance policies, and there were "compatibility issues" that prevented the policy from being converted into the management system of the third-party company.Therefore, these policies can only be managed manually, not digitally.
Jones said that since the beginning of 2016, his department has received more than 100 complaints from consumers.In some additional complaints, consumers stated that payments cannot be processed digitally, and if their insurance accounts are later transferred to digital systems, some people will face rollback premiums for months or even a year.
The two companies can choose to confront the Bo court. Although the judge will make a suggestive decision, Jones said that the final decision lies with the Insurance Bureau.
According to June 2019, 6Report, Accordia was brought to court by the policyholder in Illinois, and the Federal Court has reached a preliminarySettlement Agreement, The final hearing will be held in December 2019.
Consumer's choice
In this case, Chinese consumers who encounter this situation in California can file complaints through the following channels to protect their legitimate rights and interests.At the same time, in order to reduce the uncertain risk and loss of insurance termination, it can be considered to be converted into a better insurance policy product.
American Life InsuranceGuide.com reporters will contact the CDI News Speaking Department of the California Insurance Bureau to bring the latest news reports.
(Related reports:Global Atlantic's insurance company reached an out-of-court settlement agreement, and the final compensation clause was announced in December）
Click on the avatar to view the press release on the official website of the California Insurance Bureau
Accordia/Athene Life user complaints:
[email protected]
What is 1035 policy conversion?Is it tax exempt?Please click to view this column
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