For Immediate Release
Commissioner Mike Rothman joins in multi-state investigation leading to a $700,000 settlement
ST. PAUL, MN – Commissioner Mike Rothman this week signed a regulatory settlement agreement with American Family Life Assurance Company of Columbus (AFLAC). The Minnesota Department of Commerce joined with the Departments of Insurance of Idaho and Missouri in conducting a market conduct examination.
“We strive to protect consumers from improper market conduct by insurance companies and agents.” said Commissioner Rothman. “We are pleased with the outcome of this multistate examination and AFLAC’s cooperation.”
The examination was done for the purposes of inspecting the Company’s underwriting, sales and marketing, producer licensing, complaint handling, and claims practices.
The examination led to a voluntary negotiated agreement with AFLAC, resulting in a penalty of $1,600,000, of which Minnesota’s portion is $700,000. Working at the direction of the three participating states, AFLAC has also voluntarily developed a Corrective Action Plan to ensure full compliance with regards to the terms set forth in the Regulatory Settlement Agreement.
“The Corrective Plan of Action is a critical component to the Regulatory Settlement Agreement,” said Commissioner Rothman. “The Department of Commerce worked to ensure that a roadmap to a permanent resolution was incorporated into the Regulatory Settlement Agreement.”