Health Markets Fined $20 Million

Jul 22, 2008

  1. moonlightandmargaritas
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    moonlightandmargaritas Guru

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  2. Dave020
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    "HealthMarkets, owned by three private-equity firms including the Blackstone Group, has about 612,000 policyholders in 44 states through its subsidiaries: Mega Life and Health Insurance, Mid-West National Life Insurance and Chesapeake Life Insurance. "

    I found this amazing. That is a very small total book of business for any carrier. Not even 1 million total nationwide. Wow!
     
    Dave020, Jul 22, 2008
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  3. moonlightandmargaritas
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    Also buried in the article: a $12 million fine for UHC...
     
  4. InsuranceBenefitsGroup
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    Amazing. $20M for fraud, $12M for a screwed up billing system! This never affected my 1000's of GR/UHC clients, must have been with their group/medicare blocks?
     
  5. Crabcake Johnny
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  6. chp
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    chp Super Genius

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    I know they are losing agents left and right. I just found out about a good district manager leaving from my old office, and the office I used to work in is writing very low production.
     
    chp, Jul 24, 2008
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  7. HomeService
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    I still hear the nationwide radio ads out there.
    you have heard them I am sure...

    " affordable health insurance for the self employed"
     
  8. HomeService
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    when does torchmark get nailed for the UA stuff that goes on, which sounds similar to this.
     
  9. Mark
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    September 8, 2008
    All Chesapeake Life Agents:Recently we informed you about the sale of the HealthMarkets Life Insurance Operations to Wilton Re, of Wilton, CT. A review of the Life Insurance products offered by Chesapeake Life has been completed, and we wish to share with you the resulting business decisions.
    The Life Insurance Operations will continue to underwrite and issue The Chesapeake Life Whole Life Final Expense product portfolio. We will continue to accept new business and support this market for the future.
    A decision has also been made to no longer accept Term Life and Universal Life business. Therefore, as of October 31, 2008, Chesapeake Life will no longer accept any new life insurance applications for Term and UL business. All applications received in our office in Oklahoma City on or before October 31, 2008 will be underwritten, processed and full commissions will be paid as usual.
    Additionally, any application for Term or UL products received by Chesapeake Life in our office in Oklahoma City on or before the October 31, 2008 date will be allowed a full 30 days to be underwritten and issued, if possible. Any applications not able to be underwritten and processed during this 30 day period will be returned to the agent as “incomplete” to allow the agent to place this business with another life insurance carrier.
    While we regret that these Term Life and Universal Life products will no longer be offered, we hope these stated time frames will allow you to complete any pending sales activity you have in process.
    Of course, all new and renewal commissions will continue to be paid in accordance with your agreement. We thank all the agents who have produced business over these past years, and we want to assure you that your life insurance clients will continue to be serviced with the level of quality they have come to expect from us.
    Sincerely yours,
    Bob Thomas
    Vice President
    Chesapeake Life Insurance Company
     
    Mark, Oct 23, 2008
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  10. ABC
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    Good post thank you
    I had no idea BlackStone group owned those companies.
    Now I know why the stock just keeps going down
     
    ABC, Oct 23, 2008
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