Under the settlement agreement, Conseco will pay a $2.3 million fine, with an additional $10 million if the company fails to meet process improvement benchmarks over the next two-and-a-half years.
In addition, the Carmel, Ind.-based insurer said it will review certain claims from 2005 through 2007 and provide up to $4 million of remediation.
Conseco will also move some long-term care back-office functions to the Long-Term Care Group Inc. to better manage the Conseco Senior Health Insurance business and improve customer service. The company will invest $26 million on systems enhancements and improvements over the next two-and-a-half years.
Conseco said the settlement was reached after a multi-state market conduct examination led by Pennsylvania, Illinois, Indiana, Texas and Florida.
Shares of Conseco fell 1.3% to $12.07. Gabriel Madway gm
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