Commissioner Jones announces legal action against life insurers to protect 50,000 policyholders
News: 2018 Press Release
SACRAMENTO, Calif. —Insurance Commissioner Dave Jones announced today the California Department of Insurance has served an Order to Show Cause and Accusation against Accordia Life and Annuity Company and Athene Annuity and Life Company for failing to service over 50,000 policies issued to California consumers and imperiling the benefits to which they are entitled.
The department has received over a hundred complaints from consumers, stating that they are not receiving their statutorily-mandated annual reports or billing statements and are unable to pay premiums or access any policy benefits. The department is seeking an order suspending both companies' certificates of authority for one year and to cease and desist from practices harming California consumers.
"My first priority as Insurance Commissioner is protecting consumers and the integrity of the insurance marketplace," said Commissioner Jones. "Consumers should have confidence that companies selling insurance in California are delivering on their promises and are doing so in compliance with our consumer protection laws."
In 2013, Accordia Life and Annuity acquired a $10 billion book of life insurance business, which included over 50,000 policies issued to Californians. Under the deal, the affected consumers could either consent to have their policies transferred to Accordia or reject the transfer and remain insured with Athene. While those consumers who rejected the transfer remain insured with Athene, their policies are being administered by Accordia under a separate agreement.
Since the acquisition, Accordia has had numerous problems administering the policies, which resulted in consumers being repeatedly harmed by not receiving statutorily-mandated annual reports or billing statements, and being unable to pay premiums or access policy benefits—these issues led the department to take appropriate legal action to protect consumers.
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Media Notes:
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Livestream:
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Digitized replay of conference call scheduled to begin June 12, 2018, at 12 p.m. and end on June 19, 2018. To listen, dial 800-475-6701 (U.S.), 320-365-3844 (International) Access code: 450570
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Consumers with questions about their policies should contact CDI's Consumer Hotline 800-927-4357 or visit the website for assistance.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
