Cigna

Cigna Corp. (CI) will pay about $1.7 million in fines and fees as part of a settlement reached with five state insurance regulators over claims-handling practices for long-term disability insurance, said California Insurance Commissioner Dave Jones.During examinations of the health insurer's claims-handling practices, insurance department officials in California, Connecticut, Maine, Massachusetts and Pennsylvania found irregularities, such as not giving due consideration to the medical findings of independent physicians, discounting information provided by Social Security Disability decisions and not giving appropriate consideration to workers' compensation records, Mr. Jones said.The health insurer is re-evaluating certain claims and has set aside $77 million for projected payments to policyholders whose claims weren't handled properly, Mr. Jones said. Under the settlement, Cigna also is required to enhance claim procedures to improve the claims-handling process and participate in a t...

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