A settlement was reached on Decemeber 1st between the California Department of Insurance and The Life Insurance Company of North America (LINA) due to allegations that LINA committed disability insurance claims violations in the period between January 2005 and December 2007. LINA, which operates under the CIGNA banner, has settled to pay $600, 000 on top of changing the policies that caused the issue as well as re-reviewing all claims of California residents that were denied during that period to see if coverage could be issued under the new policies.
The allegations were initially brought up after the California Department of Insurance launched a investigation into LINA's claim-handling practices. The investigation found numerous infractions and oversights, chief among them being instances of denial of coverage without request of medical records.
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