Cigna To Pay Up To $77M In Disability Income Insurance Claims

Law360, Los Angeles (May 22, 2013, 4:37 PM EDT) -- Cigna Corp. will pay up to $77 million in re-evaluated disability income insurance claims as part of a market-conduct settlement agreement it reached with state insurance departments in California, Connecticut, Maine, Massachusetts and Pennsylvania, the Pennsylvania Insurance Department announced Wednesday.

Under the terms of the settlement, which the parties reached May 13, the departments will monitor the revised disability claims procedures for three Cigna companies involved in the claims dispute. The departments will also assess $1.68 million in fines and administrative fees against the companies.

The companies are Life Insurance Co. of North America, Connecticut General Life Insurance Co., and Cigna...

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