Maine fines Mich. insurance firm

Posted June 15, 2010, at 11:19 a.m.

AUGUSTA, Maine — Maine insurance regulators say a Michigan company is being fined $50,000 for violating Maine’s unfair claims practices law.

Insurance Superintendent Mila Kofman said Monday that the civil penalty against Household Life Insurance Co. concludes an investigation by the state resulting from a consumer complaint filed in May 2009.

The consumer had a credit disability policy with Household, which promised to make payments on her mortgage if she became disabled. The state concluded that the claim should have been paid.

Kofman said the woman’s claim was not properly reviewed by the insurance company and she nearly lost her home as a result. She said the case underscores the importance of bringing consumer concerns to the Insurance Bureau.