Nebraska insurer fined for Colorado violations
World Insurance Company has paid a $153,000 fine for not providing coverage to Colorado customers that it promised, a violation of state insurance law.
The Colorado Division of Insurance cited the Nebraska-based company for:
- failure to provide coverage for procedures that were preauthorized by the company;
- failure to provide complete benefits for newborns, including an overly restrictive definition of “complication of pregnancy,” within their policy forms, and a failure to provide appropriate benefits related to therapies for congenital defects and birth abnormalities.
- inappropriately excluding certain organs, systems and parts of he body from coverage
- inappropriately excluding certain “high risk” activities such as motorcycling, snowmobiling, off-highway vehicle riding, skiing or snowboarding
- issues related to the timeliness of claims payment.
World Insurance Company paid the fine to Colorado’s General Fund plus a $7,500 surcharge for the division’s outreach and education program.