According to a September 30, 2009 news article on Insurance Journal.com, Life Insurance Company of North American (LINA) has settled with the California Department of Insurance for $600,000. LINA agreed to pay in order to reach a conclusion on alleged disability insurance claims handling violations. In addition, LINA will improve its disability claims procedures and also re-open prior claims to determine if additional benefits are due.
Violations included denying claims before reviewing medical records and adjusters ignoring important new information after initially denying the claim.
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