- 14,809
Hartford will issue the credits because it didn’t comply with the 60% MLR required under New York law for plans such as the company’s accidental death and dismemberment (ADD) coverage, according to the DFS.
The period in question predates Lawsky's stewardship. A review conducted by the New York State Insurance Department for the period January, 2007 through December, 2010, revealed that The Hartford did not achieve the 60% loss ratio as provided in 11 NYCRR 59.5(b), according to the stipulation.
“Hartford reported the lower than required MLR to the Department of Financial Services (DFS) and has submitted a corrective action plan,” the Superintendent stated.
The DFS said that Hartford had failed to meet the 60% level because it overestimated the amount of money that would be spent to pay claims when the policies were priced by the insurer. This actuarial miscalculation can of course go both ways.
Hartford Life Must Reduce Premiums, Issue Credits Totaling $24 Million | LifeHealthPro
The period in question predates Lawsky's stewardship. A review conducted by the New York State Insurance Department for the period January, 2007 through December, 2010, revealed that The Hartford did not achieve the 60% loss ratio as provided in 11 NYCRR 59.5(b), according to the stipulation.
“Hartford reported the lower than required MLR to the Department of Financial Services (DFS) and has submitted a corrective action plan,” the Superintendent stated.
The DFS said that Hartford had failed to meet the 60% level because it overestimated the amount of money that would be spent to pay claims when the policies were priced by the insurer. This actuarial miscalculation can of course go both ways.
Hartford Life Must Reduce Premiums, Issue Credits Totaling $24 Million | LifeHealthPro