DCBS fined Minnesota-based Fortis Benefits Insurance Co. $20,000 for several violations of Oregon laws and administrative rules.
The fine was assessed against the company for its handling of separate claims for long-term disability (LTD) benefits by two Salem residents. An investigation by the DCBS Insurance Division found that Fortis Benefits failed to advise a Salem man if his LTD claim was accepted or denied within 30 days as required by the division’s administrative rules. In addition, the company failed to act promptly on two communications relating to the claim.
Also, after initially denying a Salem woman’s LTD claim in November 1996, Fortis Benefits rejected the claim three more times. Eventually, the company reversed its decision and paid partial benefits of $2,400 in January 1999. However, the final payment of $22,500.25 was not made until August 1999.
Topics Claims
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