Which life insurance companies cover which customers
New York life insurance firm wilson has agreed to pay $8.5 million to settle charges of misleading insurance claims, the largest ever settlement in a federal fraud investigation, the Justice Department announced today.
The settlement resolves the federal fraud charges brought by the Department of Justice and the U.S. Attorney’s Office for the Southern District of New York, according to a statement from the Department.
The Department also announced that it had agreed to an agreement with Wilson to pay an additional $4.5m to settle claims related to false claims for life insurance policies, as well as $2.5mn in civil penalties, for the same types of fraud and other violations of the Affordable Care Act.
“The fraud committed by Wilson, which was a violation of the law, was pervasive and serious,” Acting Attorney General Sally Yates said in a statement.
“This settlement is an important step towards preventing future frauds and the potential for further financial damage.”
Wilson admitted to a number of federal fraud and civil penalty violations, including misleading insurance policyholders and falsely asserting that they were covered by the company’s Life Insurance Policies Program.
The company’s fraudulent practices led to the wrongful death of at least 10 customers, according the DOJ.
“We have learned from our past mistakes and we will work to improve,” Wilson said in the statement.
“This settlement represents a significant step in the Department’s efforts to hold our insurance companies accountable for their actions and take steps to ensure they are not making similar mistakes in the future,” the DOJ added.
Wilson has been charged with 23 counts of fraud related to the fraud and insurance misconduct, and the company has agreed not to commit any further fraudulent acts or conduct in the United States.
The Justice Department said it has identified and prosecuted approximately 1,100 companies for false claims and claims of life insurance fraud.