California Department of Insurance Reaches Settlement with Hartford
California Department of Insurance
July 2, 2007
Sacramento - California Reaches Settlement on Discretionary Clause in Disability Income Insurance Policies. Hartford agrees to replace controversial provision and to make benefits decisions based on a new policy term.
As part of its ongoing efforts to make disability income insurance policies provide greater and more certain benefits to California workers, Insurance Commissioner Steve Poizner announced a settlement with Hartford Life Insurance Company that provides that the policies it sells in California will no longer contain controversial "discretionary clause" language.
"The discretionary clause gives an insurer complete discretion when determining whether an injured worker is entitled to benefits," said Commissioner Poizner. "This settlement means that going forward The Hartford will use the new policy language to determine claim benefits. I want to commend The Hartford for working cooperatively with the Department to resolve this important consumer issue."
The Department intends to apply the terms of the settlement to all disability income insurance policies sold in the State.
The settlement requires that when making benefits decisions, The Hartford will:
Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
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