Today, June 12th, 2018, Insurance Commissioner Dave Jones announced the C.D.I (California Department of Insurance) has served an Order to Show Cause and Accusation against Accordia Life and Annuity Company, as well as Athene Annuity and Life Company. The companies are accused of failing to service over 50,000 policies issued to their consumers in California, and imperiling the benefits included in those policies.
In a live press conference, Commissioner Dave Jones said, “Today we’re here to announce a cease and desist and Order to Show Cause that has been served on two life insurance companies. Yesterday the department filed and served an order to show cause and accusation against Accordia Life and Annuity and Athene Annuity and Life company for their failure to properly administer tens of thousands of life insurance policies issued to Californians and for their imperiling the benefits to which these policies are owed under the policies.”
In 2013, Accordia purchased a $10b book of business from Athene containing over 50k policies in California. Under those terms, the effected consumers had the option to accept the transfer to Accordia or reject the transfer and remain insured with Athene; however, those consumers who rejected the transfer and remained insured with Athene, the policies are being administered by Accordia under a separate agreement.
Since 2016, the California Department of insurance has received over 100 complaints in regard to Athene/Accordia, in that, consumers have not received their statutorily-mandated annual reports or billing statements and are unable to pay premiums or access policy benefits. Commissioner Jones went on, “Based on these complaints the Department of Insurance has further concerns that consumers may experience financial difficulties in paying back premiums and also face the risk of lapse in their insurance policy if they’re unable to pay back premiums. As I noted the departments actions are based on Accordia’s inability to appropriately administer the 50,000 life insurance policies sold to Californians and to provide services to California policy holders.”
– Accordia is accused of not providing Annual Reports to policy holders, which are required under Insurance Code 10509.959; these reports provide information that is considered crucial to consumers relating to how their policies are performing. Without such information, consumers are unable to make financial decisions based on the performance of these policies.
– The electronical administration system that was used by Athene and Accordia was unable to Administer these policies, forcing consumers to administer on a manual basis. Jones said that because of the manual basis administration, “…Annual reports and billing statements could not be generated, previously authorized bank drafts could not be completed, policy loans, surrender requests, and other policy related transactions could not be timely honored.”
– Even after policies were transferred to the electronic administration system, many consumers continued to face issues, without correction from Athene / Accordia. The California Department of Insurance now raises the concerns on behalf of these consumers to whether they are receiving all the benefits of these policies.
If you are, or were, a policy holder of Accordia or Athene, give our law firm a call today. We will go over your situation and determine if you have a claim against Athene or Accordia. Our insurance attorneys are currently investigating the negligence on the part of these insurance companies to make sure they are delivering on the promises they made to their policy holders.
888-LAW-3111 Monday-Friday, 24 hrs a day, 7 days a week.
— Michael Avanesian, Esq.
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