Insurer To Pay $625,000 To Settle Deceptive Practices Claims

BOSTON (AP) — An insurance company has agreed to pay $625,000 to settle allegations that it used deceptive and illegal practices to sell health insurance plans to Massachusetts residents, the state attorney general's office said Monday.

Under terms of the settlement, Florida-based Health Insurance Innovations will repay customers $515,000, pay $100,000 in civil penalties to the state, and $10,000 to cover the cost of the investigation, officials said.

The insurer sold health insurance plans to Massachusetts residents from Unified Life Insurance Company that were not authorized for sale, according to the complaint filed in Suffolk Superior Court.

Deceptive sales practices included claiming that the unauthorized health insurance covered services that it actually excluded, describing limited health insurance as comprehensive, and calling coverage limitations as positives, rather than negatives, authorities said.

“Massachusetts has strict regulations regarding the marketing and sale of health insurance for a reason: to prevent companies like this one from taking advantage of people regarding something as serious and essential as healthcare,” Attorney General Maura Healey said in a statement.

An email seeking comment was left with Health Insurance Innovations.