MEGA Life & Health Agrees to $2 Million Settlement For Abusive Insurance Practices

Following multiple and habitual violations of Rhode Island’s Small Employer Health Insurance Availability Act since 2004, MEGA Life & Health Insurance Company has reached a settlement with the State’s Health Insurance Commissioner for more than $2 million.  Pursuant to the settlement agreement, MEGA Life & Health must pay $2.3 million in restitution to approximately 5,500 self-employed Rhode Islanders due to charging excessive membership fees and premiums, wrongfully denying coverage for pre-existing conditions, and failing to provide equal coverage among its eligible health insurance customers, among other violations.

WPRI Eyewitness News On MEGA Life & Health’s $2 Million Settlement

Rhode Island is not the only state that has accused MEGA Life & Health Insurance Company of violating state laws enacted to regulate the industry and to protect consumers against bad faith insurance practices.  In 2008, HealthMarkets, Inc. and its subsidiaries [MEGA Life & Health Insurance Company, Mid-West National Life Insurance Company of Tennessee, and Chesapeake Life Insurance Company] settled a multi-state bad faith suit in the amount of $20 million for wide-spread and abusive practices.  Many states and individual policyholders have also pursued independent actions against HealthMarkets and its affiliates.

If you have concerns about your insurance company’s compliance with state laws or the terms of a life, health, or other insurance policy, you should immediately contact an experienced life insurance attorney about your case.  The Life & Property Insurance Law Offices of Heather D. Lee, Esquire offer free consultations on all life and property insurance matters.

Protecting Your Rights & Your Family

The Life & Property Insurance Law Offices of Heather D. Lee, Esquire assist insured persons and their beneficiaries on delayed and denied life insurance claims, homeowners and renters insurance disputes, and other contract and consumer protection matters.  Our mission is to protect your rights and your family by ensuring that powerful insurance companies fulfill their legal and contractual obligations to you.

While the Life Insurance Law Bloggers are primarily focused on life and property insurance matters, it is our priority to provide helpful information regarding many areas of civil claims and consumer law.  The information on this site may not apply to your state, as insurance laws vary from state-to-state.  The Life & Property Insurance Law Offices of Heather D. Lee, Esquire are located in New York, Pennsylvania, and Colorado.  The information on the Life & Property Insurance Lawyer Blog is NOT and should NOT be construed as legal advice.  The information contained in this website does not create an attorney-client relationship between any person who reads such information and Heather D. Lee, Esquire and/or the Life & Property Insurance Law Bloggers.

For your free case evaluation, Contact Us to speak with an experienced life and property insurance attorney about the details of your claim today.