April 19, 2014 9:27 PM ET

Insurance

Company Overview of Connecticut General Life Insurance Company, Inc.

Company Overview

Connecticut General Life Insurance Company, Inc. provides disability, life, and accident insurance products. The company offers life, accident, and supplemental health insurance to individuals via direct marketing; health care and related employee insurance benefits to the expatriate employees of multinational companies on international assignments; and managed medical, pharmacy, and dental care services, including integrated indemnity and group life, and health insurance to workplace and consumer markets. It provides its products to employees and association members through their employers, associations, and other affinity groups. The company was incorporated in 1865 and is based in Bloomfi...

900 Cottage Grove Road

Bloomfield, CT 06002-2920

United States

Founded in 1865

Phone:

860-226-5209

Fax:

860-226-5400

Key Executives for Connecticut General Life Insurance Company, Inc.

President
Age: 66
Senior Vice President
Senior Vice President
Senior Vice President
Senior Vice President
Compensation as of Fiscal Year 2013.

Connecticut General Life Insurance Company, Inc. Key Developments

Cigna Agrees to $35 Million Settlement in 401 Lawsuit in Illinois

Federal judge in Illinois has granted preliminary approval of a $35 million settlement in a 401(k) ERISA case on behalf of Cigna employees. Six plaintiffs are suing Cigna Corp., John Arko, The Corporate Benefit Plan Committee of Cigna, Connecticut General Life Ins. Co., TimesSquare Capital Management Inc., Cigna Investments Inc. and Prudential Retirement Insurance and Annuity Co. On behalf of a class of employees, the plaintiffs alleged the defendants violated the Employee Retirement Income Security Act of 1974 by causing the Cigna 401(k) plan to pay excessive fees, causing the plan to engage in prohibited transactions and receiving improper benefits from the plan as a result of Cigna’s sale of its retirement business to Prudential. Jerome Schlichter, of Schlichter, Bogard & Denton in St. Louis, represented the plaintiffs. Judge Harold Baker, of the U.S. District Court for the Central District of Illinois, presided over the case. Baker gave preliminary approval to the settlement. The defendants deny liability, all allegations of wrongdoing and that the class, its representatives or the plan suffered any losses. According to the agreement, Schlichter, Bogard & Denton will receive no more than $11.7 million in attorneys’ fees and no more than $1.2 million in litigation costs and expenses. Fees and expenses will come from the $35 million settlement. Each named plaintiff will receive no more than $25,000 in class representative compensation.

Cigna to Pay $1.6 Million in Fines/Fees and Up to $70 Million to Denied Policyholders

California Insurance Commissioner Dave Jones announced that he, along with four other state insurance regulators, has reached a settlement with the CIGNA group over claims handling practices for long-term disability insurance. The settlement comes after individual examinations into the insurance company's claims handling practices by the California, Connecticut, Maine, Massachusetts, and Pennsylvania state insurance departments. As a result, the CIGNA companies are now reviewing past claims that were improperly handled in California from January 1, 2008 to December 31, 2010. Several companies were involved in the settlement, including CIGNA Health and Life Insurance Company (formerly known as Alta Health and Life), and Connecticut General Life Insurance Company, Life Insurance Company of North America. They have set aside $77 million for estimated payments to wrongfully denied policyholders nationwide. They are also required to pay a $500,000 penalty to the California Department of Insurance and $150,000 to reimburse the department for the cost of ongoing monitoring that is required under the settlement agreement. According to Jones, insurance department officials found that claim handling irregularities, such as not giving due consideration to the medical findings of independent physicians, discounting information provided by Social Security Disability decisions, and not giving appropriate consideration to workers compensation records. Under the settlement agreement, the companies are required to: Enhance claim procedures to improve the claims handling process to benefit current and future policyholders; Establish a remediation program in which the companies' enhanced claim procedures will be applied to certain previously denied or adversely terminated claims for residents of states whose insurance commissioners also signed the settlement agreement; Participate in a 24-month monitoring program conducted by the insurance departments of the five lead states; Undergo a re-examination upon completion of the monitoring period; Pay fines and administrative fees totaling $1,675,000 to the five lead states.

District Court Dismissed all of Encompass' Claims Except those of its State Law Breach of Contract Claims Related to Lawsuit against Connecticut General Life Insurance Co

The U.S. District Court for the Northern District of Texas denied the motion of a corporate insured to dismiss counterclaims for lack of standing, which were brought against it by its ERISA-regulated health insurer alleging overpayment of claims. The insurer's allegations were sufficient to establish its discretion or authority to adjudicate ERISA benefit claims. On Sept. 22, 2011, Encompass Office Solutions Inc. sued Connecticut General Life Insurance Co. d/b/a CIGNA and related parties (collectively, CIGNA), alleging breach of contract and violations of ERISA. CIGNA counterclaimed for overpayment under ERISA and related claims. The district court dismissed all of Encompass' claims except those of its state law breach of contract claims that were based on non-ERISA plans. The case came before the court on Encompass' motion to dismiss CIGNA counterclaims for lack of standing. The counterclaims centered on a scheme under which Encompass submitted claims for the payment of facility services to CIGNA even though Encompass could not provide such services. These improper claims, each of which amounted to approximately $6,200, allegedly caused CIGNA to wrongly pay hundreds of thousands of dollars to Encompass. The court noted that CIGNA-administered plans generally covered expenses for charges made by a licensed surgical facility for medical care, and provided a detailed definition of a 'free-standing surgical facility' that would qualify for such coverage. The court held that CIGNA's allegations regarding its discretion or authority to adjudicate claims for benefits under ERISA plans was sufficient to establish its status as a fiduciary under ERISA. CIGNA alleged that it was delegated by plan sponsors with the discretion or authority to adjudicate claims for benefits under the plans at issue, and that it brought its counterclaims to recover payments that were not reimbursable under plans it administered. The court further noted that CIGNA had clarified in its responsive briefing that its overpayment claim was limited to recovery of monies under the plans. Accordingly, the court denied Encompass' motion to dismiss based on prudential or statutory standing.

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