Commissioner Jones Announces Legal Action Against Life Insurers to Protect 50,000 Policyholders
Source: CA Dept. of Justice
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.