Insurers face penalties from Ariz. regulators - East Valley Tribune: Business

Insurers face penalties from Ariz. regulators

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Posted: Friday, October 3, 2008 1:45 pm | Updated: 9:11 pm, Fri Oct 7, 2011.

Arizona regulators are imposing big civil fines on two insurance companies for premature denials and other improper handling of consumer health care claims.

Consent agreements with the state Insurance Department impose penalties of $129,000 against Cigna Healthcare of Arizona Inc. and $101,000 against Connecticut General Life Insurance Co.

The department says compliance reviews found violations that included failing to pay interest on late payments to care providers and denying claims without first requesting additional information.

Insurance Director Christina Urias says inappropriate denials of claims by providers is a common practice among many insurers.

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