Vermont Department of Financial Regulation issues fine for improper life insurance payments
April 20, 2019 by Vermont Press Release
Montpelier, VT – (April 15, 2019) — The Vermont Department of Financial Regulation (DFR) has entered into a Stipulation and Consent Order with the CMFG Life Insurance Company (CMFG) for improperly calculating interest amounts resulting in underpayments to approximately 200 life insurance policy beneficiaries. Under the terms of the settlement, CMFG will pay a $231,000 administrative penalty and implement a corrective action plan. CMFG has also paid the correct interest amounts to the affected beneficiaries.
Since the investigation process began, CMFG provided accurate information, initiated a comprehensive system overhaul, and made verifiable improvements to its supervisory procedures by implementing a detailed compliance program and enhanced reporting. CMFG’s response was forthcoming, detailed, and timely.
“Vermonters and their beneficiaries should get the full benefit of the life-insurance policies they purchase. In this instance, although interest was calculated improperly, I am pleased that CMFG cooperatively worked with our department to resolve the issue,” said DFR Commissioner Michael S. Pieciak. “CMFG took this matter seriously by properly self-reporting, changing its procedures and system safeguards, and implementing a training and reference program to prevent this from happening again,” the Commissioner said.
Commissioner Pieciak would like to thank the DFR staff who worked diligently on these matters, including Izzi Kaiser, Marcia Violette, Phil Keller, Chris Rouleau, and Stephanie Hoffman.
Vermonters with concerns about life insurance interest payments, or other insurance concerns, should contact the DFR consumer services department by phone at 802-828-3302 or 800-964-1784, or by email at firstname.lastname@example.org.