Two insurers are under investigation by the FTC for selling a product they didn’t require the customer to use
FourFourtwo title Two insurance companies are under federal investigation for selling products they didn ‘t require the client to use.
Insurance regulators are investigating two large insurance companies for marketing products that did not require consumers to buy a premium plan.
The Consumer Financial Protection Bureau said Friday it was investigating two companies for allegedly marketing products they did not have the right to sell to consumers.
Under the terms of a settlement agreement, which the agency announced Friday, the companies agreed to pay $1.8 million to settle claims that they misrepresented insurance and sold products they weren’t legally required to sell.
A spokeswoman for the CFPB did not immediately respond to a request for comment.
In January, the agency said it had received hundreds of complaints from consumers alleging they were tricked into purchasing insurance products they hadn’t signed up for.
The agency has investigated more than 30 insurers over the past decade.
At the time, the insurers said they only sold policies to people who had already purchased them and that the policy renewal process was handled by the companies.
On Friday, however, the bureau said that at least 10 of the insurers violated federal consumer laws by marketing products to people without having them legally required under the law.
The companies also allegedly did not disclose to consumers that they could be subject to civil penalties under the act.
The two companies are Anthem and American Health Benefit Corp., according to the settlement.
The two companies said they are cooperating with the investigation and will cooperate with any further investigations.
Anthem and AHB have said that they have been in compliance with the law since 2016.
“Our goal was always to make sure that customers knew about the protections they had,” Anthem CEO Mike Cavanaugh said in a statement to the news service.
As a result of the settlement, Anthem and its affiliates will have to stop selling a policy that doesn’t require a premium to be paid.