Life Insurer Rescinded Paid-Up Life Policies Without Consumer Consent: New York Officials
September 25, 2019 by Allison Bell
The New York Department of Financial Services wants life insurers in the state to comply with the state’s policyholder notice rules when they try to declutter blocks of life insurance business.
The department sent that message Tuesday, by announcing the imposition of a $260,000 fine on a life insurer that rescinded 260 small, paid-up life insurance policies without the consumers’ consent.
The department imposed the fine on American Progressive Life and Health Insurance Company of New York.
Linda Lacewell, the department’s superintendent, said in a statement that the insurer “took the power of choice from consumers into their own hands.”