Investment News reports today that Conseco Inc., “despite vehement objections from state regulators” has completed the transfer of its remaining long-care insurance policies into an independent trust after the Pennsylvania Department of Insurance approved the carrier’s reprehensible plan to disavow its responsibility to provide coverage for its policyholders when they need it. See http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081113/REG/811139970.
The sad fact is that most of the policyholders are too old or too ill to put up much of a fight. Insurance commissions from around the country, including California Insurance Commissioner Steve Poizner, had vigorously urged the Pennsylvania commissioner to hold public hearings, fearing the Senior Health Care Oversight Trust was inadequately capitalized. Those requests were ignored.
From the beginning, Conseco’s handling of its undercapitalized LTC business has been an embarrassment to the entire LTC industry, which includes a number of carriers that operate with integrity in the claims-handling and benefits-paying process. Conseco stood out for its lack of empathy for seriously ill policyholders relying on the company’s promises. The demise of Conseco’s LTC business has been a long, unpleasant saga for many of its consumers, and this latest chapter does not reflect well on the company nor offer much solace for the remaining policyholders.
Now it’s time for plaintiffs’ lawyers to step in to clean up the mess created by corporate ineptitude and government kowtowing. 11/20/08