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CIGNA (Connecticut General Life Insurance Co.) is ordered to pay a $7,500 penalty

Order
Tuesday, May 28, 2013
Docket No: 13-003-I

DOCKET NO. 13-003-1

 

IN RE: CONNECTICUT GENERAL LIFE INSURANCE COMPANY NAIC #62308

 

 

STIPULATION AND CONSENT ORDER

The Insurance Division of the Vermont Department of Financial Regulation ("Department") and Connecticut General Life Insurance Company ("Respondent") stipulate and agree:

1. Pursuant to the authority contained in 8 V.S.A. §§ 11-13, 15, and 18 V.S.A. § 9412, the Commissioner of the Department ("Commissioner") is charged with enforcing the insurance laws of the State of Vermont.

2. Respondent offers health insurance products and is duly licensed in the State of Vermont. Respondent is located at 900 Cottage Grove Road, Bloomfield, CT, 06002.

3. Act 150 of2011, codified in part under 18 V.S.A. § 9414a, requires all health insurers with a minimum of 2,000 Vermont lives covered at the end of the preceding year or who offer insurance through the Vermont health benefit exchange pursuant to 33 V.S.A. chapter 18, subchapter 1 to submit an annual report containing certain information to the Commissioner as an addendum to the health insurer's annual statement (the "Annual Report"). The most recent Annual Report was due March 1, 2013.

4. The March 1, 2013 due date passed without receipt by the Department of Respondent's Annual Report.

5. The Department acknowledges that it received Respondent's completed Annual Report on March 25, 2013.

6. Respondent has been made aware that the Department may elect to proceed with an administrative action against it for a violation of 18 V.S.A. § 9414a, pursuant to 18 V.S.A. § 9412 and Title 8, and seek appropriate relief to the extent of the Department's statutory authority.

7. Respondent wishes to resolve this matter without a hearing by entering into this Stipulation and Consent Order with the Department on the terms and conditions set forth herein.

8. Respondent waives its right to a hearing before the Commissioner or the Commissioner's designee, and all other procedures otherwise available under Vermont law, the rules of the Department, the provisions of Chapter 25 of Title 3 regarding contested cases, or any right they may have to judicial review by any court by way of suit, appeal, or extraordinary remedy with respect to the terms of the Stipulation and Consent Order set forth herein.

9. Respondent acknowledges its understanding of all terms, conditions, undertakings, and obligations contained in this Stipulation and Consent Order.

10. Respondent acknowledges that the Stipulation and Consent Order constitutes a valid order duly rendered by the Commissioner and agrees to be fully bound by it. Respondent acknowledges that noncompliance with any of the terms of this Stipulation and Consent Order shall constitute a violation of a lawful order of the Commissioner and shall be a separate violation of the laws of the State of Vermont and shall subject Respondent to administrative action or sanctions as the Commissioner deems appropriate. Respondent further acknowledges that the Commissioner retains jurisdiction over this matter for the purpose of enforcing this Stipulation and Consent Order.

11. Other than as specifically set forth herein, the Department retains any rights it has to respond to and address any consumer complaint that may be made with regard to Respondent and a transaction in insurance, as defined in 8 V.S.A. § 3301, including the right to pursue any remedy authorized by law in response to such a consumer complaint.

THE DEPARTMENT AND RESPONDENT FURTHER STIPULATE AND AGREE:

12. Respondent shall pay an administrative penalty in the amount of Seven Thousand Five Hundred Dollars ($7,500.00) within ten (10) days of the execution of this Stipulation and Consent Order in full and final satisfaction of all fines and penalties arising from the late submission of the Annual Report as described in paragraphs 4 and 5 hereof.

13. Respondent waives its statutory right to notice and a hearing before the Commissioner of the Department, or her designated appointee with respect to the subject matter of this Stipulation and Consent Order.

14. Respondent acknowledges and agrees that this Stipulation and Consent Order is entered into freely and voluntarily, and that except as set forth herein, no promise was made to induce Respondent to enter into it. Respondent acknowledges that it understands all terms and obligations contained in this Stipulation and Consent Order. Respondent acknowledges that it

has consulted with its attorney in this matter and that it has reviewed this Stipulation and Consent Order and understands all terms and obligations contained herein.

15. Respondent consents to the entry of this Stipulation and Consent Order and agrees to be fully bound by its terms and conditions. Respondent acknowledges that noncompliance with any of the terms of this Stipulation and Consent Order may constitute a separate violation of the insurance laws of the State of Vermont and may subject it to sanctions.

16. The terms set forth in this Stipulation and Consent Order represent the complete agreement between the parties as to its subject matter.

17. The undersigned representative of Respondent affirms that he or she has taken all necessary steps to obtain the authority to bind Respondent to the obligations stated herein and has the authority to bind Respondent to the obligations stated herein.

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

 

CONSENT ORDER

1. The stipulated facts, terms and provisions of the Stipulation are incorporated by reference herein.

2. Jurisdiction in this matter is established pursuant to 8 V.S.A. Chapters 101 and 129.

3. Pursuant to the Stipulation, Respondent consents to the entry of this Consent Order.

4. Respondent shall comply with all agreements, stipulations, and undertakings as recited above.

5. Other than as specifically set forth herein, nothing contained in this Order shall restrain or limit the Department in responding and addressing any consumer complaint about Respondent filed with the Department or shall preclude the Department from pursuing any other violation of law.