An Indiana insurance company will set up a $10 million fund to settle a multistate investigation into increases in policy
costs.
Regulators from California, Florida, Iowa, Indiana and Texas investigated Conseco Life Insurance Co.'s handling of more
than 12,000 Lifetrend insurance policies after receiving complaints from consumers who had received notices in the fall of
2008 about premium increases.
Investigators say Conseco Life, a unit of Carmel-based CNO Financial Group Inc., failed to tell consumers some policies were
underfunded and knew products weren't being properly administered but took no action.
The agreement also requires the company to pay $1 million to be divided among the investigating states.
CNO spokesman Tony Zehnder says the company accounted for the settlement at year-end 2009.
The company said Wednesday that the settlement had been finalized; a total of 37 jurisdictions have signed the agreement.
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