PDF South Dakota Division of Insurance Market Conduct Examination ...

South Dakota Division of Insurance Market Conduct Examination Report of Assurant, Inc.

(NAIC Group Code 0019)

Union Security Insurance Company (NAIC Company Code 70408) 2323 Grand Boulevard Kansas City, MO 64108

American Memorial Life Insurance Company (NAIC Company Code 67989) 440 Mt. Rushmore Road Rapid City, SD 57701

American Bankers Life Assurance Company of Florida (NAIC Company Code 60275) 11222 Quail Roost Drive Miami, FL 33157

Time Insurance Company (NAIC Company Code 69477)

501 W. Michigan Avenue Milwaukee, WI 53201-3050

John Alden Life Insurance Company (NAIC Company Code 65080) 501 W. Michigan Avenue Milwaukee, WI 53201-3050

Table of Contents

Salutation ...................................................................................................................................................................... 4 Foreword....................................................................................................................................................................... 5 Scope of Examination................................................................................................................................................... 6 Executive Summary...................................................................................................................................................... 7 Explanation of The Examination Process ..................................................................................................................... 9

Review of Files .................................................................................................................................................... 10 Chapter 1: Union Security Insurance Company Background Information .................................................................11

A. History ...........................................................................................................................................................11 B. Profile............................................................................................................................................................. 12 Examination Findings .............................................................................................................................................. 13 I. Union Security Company Operations and Management ..................................................................................13 IL Union Security Complaint Handling ............................................................................................................... 14 III. Union Security Marketing and Sales ............................................................................................................. 15 IV. Union Security Producer Licensing ............................................................................................................... 15 V. Union Security Underwriting and Rating ...........:........................................................................................... 16 VI. Union Security Claims...................................................................................................................................21 Chapter 2: American Memorial Life Insurance Company..........................................................................................24 Background Information..........................................................................................................................................24 A. History ...........................................................................................................................................................24 B. Profile.............................................................................................................................................................25 Examination Findings ..............................................................................................................................................27 I. American Memorial Company Operations and Management ..........................................................................27 II. American Memorial Complaint Handling .......................................................................................................28 III. American Memorial Marketing and Sales .....................................................................................................28 IV. American Memorial Producer Licensing.......................................................................................................28 V. American Memorial Underwriting and Rating ...............................................................................................29 VI. American Memorial Claims ..........................................................................................................................30 Chapter 3: American Bankers Life Assurance Company of Florida Background Information ..................................32 A. History ...........................................................................................................................................................32 B. Profile.............................................................................................................................................................32 Examination Findings .............................;....................................................................................................................33 I. American Bankers Company Operations and Management.............................................................................33 II. American Bankers Complaint Handling ........................................................................................................34 III. American Bankers Marketing and Sales ........................................................................................................34 IV. American Bankers Producer Licensing .........................................................................................................34 V. American Bankers Underwriting and Rating ..................................................................................................35 VI. American Bankers Claims .............................................................................................................................37 Chapter 4: Time Insurance Company Background Information ..................................................................................40 A. History ...........................................................................................................................................................40 B. Profile..............................................................................................................................................................40 Examination Findings ..............................................................................................................................................41 I. Time Company Operations and Management .................................................................................................41 II. Time Complaint Handling...............................................................................................................................42 III. Time Marketing and Sales .............................................................................................................................43 IV. Time Producer Licensing...............................................................................................................................44 V. Time Underwriting and Rating .......................................................................................................................44 VI. Time Claims ..................................................................................................................................................50 VII. Time Forms ..................................................................................................................................................56 Chapter 5: John Alden Life Insurance Company Background Information ................................................................57 A. History ...........................................................................................................................................................57 B. Profile.............................................................................................................................................................57 Examination Findings ..............................................................................................................................................59 I. John Alden Company Operations and Management .......................................................................................59 II. John Alden Complaint Handling .....................................................................................................................60

Page 2 of77

III. John Alden Marketing and Sales ...................................................................................................................61 IV. John Alden Producer Licensing.....................................................................................................................61 V. John Alden Underwriting and Rating .............................................................................................................62 VI. John Alden Claims ........................................................................................................................................66 VIL John Alden Forms ........................................................................................................................................71 Summary ofViolations ................................................................................................................................................72 Conclusion ...................................................................................................................................................................77

Page 3 of77

Salutation

June 29, 2016

Honorable Larry Deiter Insurance Director State of South Dakota 124 South Euclid Avenue, 2nd Floor Pierre, South Dakota 57501

Dear Director Deiter:

In compliance with the instructions contained in the September 5, 2012 Order for Examination, a market conduct examination of Assurant, Inc. has been conducted.

Assurant, Inc. is incorporated under the laws of the State of Delaware. The following Assurant, Inc. companies were examined:

? Union Security Insurance Company ? American Memorial Life Insurance Company ? American Bankers Life Assurance Company of Florida ? Time Insurance Company ? John Alden Life Insurance Company

The examination consisted of two phases, an on-site phase and an off-site phase. The on-site phase of the examination was conducted at the following Company locations:

? Union Security Insurance Company 2323 Grand Boulevard, Kansas City, MO 64108

? American Memorial Life Insurance Company 440 Mt. Rushmore Road, Rapid City, SD 57701

? American Bankers Life Assurance Company of Florida 11222 Quail Roost Drive, Miami, FL 33157

? Time Insurance Company John Alden Life Insurance Company 501 W. Michigan Avenue, Milwaukee, WI 53201

The off-site examination phase was performed at the offices of the South Dakota Division of Insurance or other appropriate locations.

The report of examination thereon is respectfully submitted.

Page4 of77

Foreword

This examination reflects the Companies' insurance activities in the State of South Dakota. This market conduct examination report is, in general, a report by exception. Some of the information reviewed by the examiners may not be referenced in this written report regarding practices, procedures, or files that did not result in any errors or irregularities. Failure to comment on specific products, procedures or files does not constitute approval thereof by the South Dakota Division of Insurance.

In performing this examination, the Division selected a portion of the Group's operations for review. This report does not fully reflect a review of all of the practices and activities of the Group.

The following is a list of abbreviations used in this Report:

Abbreviation "American Bankers" "American Memorial" "AD&D" "ARSD" "Company" or "Companies"

"Division" "Group" "John Alden" "LTD" ''NAIC" "SDCL" "STD" "Time" "Union Security"

Refers to American Bankers Life Assurance Company of Florida American Memorial Life Insurance Company Accident Death and Dismemberment South Dakota Administrative Rules Collectively or individually to Union Security Insurance Company, American Memorial Life Insurance Company, American Bankers Life Assurance Company ofFlorida, Time Insurance Company, or John Alden Life Insurance Company South Dakota Division of Insurance Assurant, Inc. group of companies John Alden Insurance Company Long Term Disability National Association of Insurance Commissioners South Dakota Codified Law Short Term Disability Time Insurance Company Union Security Insurance Company

Page 5 of77

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download