(Sacramento, CA – Insurance News 360) – Insurance Commissioner Dave Jones has served Accordia Life and Annuity Company and Athene Annuity and Life Company with an Order to Show Causation and Accusation after the companies failed to provide service and benefits to more than 50,000 California consumers
After more than 100 complaints from customers who were not provided with statutorily-mandated annual reports or billing statements, which made them unable to pay premiums or access any policy benefits, the California Insurance Department sought an order to suspend the companies’ certificates of authority for one year, as well as to cease and desist from practices harming California consumers.
“My first priority as Insurance Commissioner is protecting consumers and the integrity of the insurance marketplace,” said Commissioner Jones. “Consumers should have confidence that companies selling insurance in California are delivering on their promises and are doing so in compliance with our consumer protection laws.”
Five years ago, Accordia Life and Annuity acquired a $10 billion book of life insurance business with more than 50, 000 Californians’ policies. The deal reuired that affected consumers could have their policies transferred or remain with Athene. Those who did not consent to the transfer stayed with Athene, but their policies are administered by Accoria. Since then, Accordia has repeatedly harmed consumers who have not received their annual reports or billing statements, which kept them from paying premiums or getting their policy benefits.
Those issues caused the department to take appropriate legal action to protect consumers.
Source: California Department of Insurance.