BOSTON — A company authorities say used deceptive practices to sell supplemental health insurance to veterans and other Massachusetts residents will now pay more than $5 million to settle case.
Attorney General Martha Coakley said Tuesday that the new $5.25 million settlement is an increase of $1.5 million over an earlier agreement reached between Coakley's office and Life Insurance Company of North America last July.
Coakley says the increase in restitution to consumers and penalties is a result of the insurer's failure to meet the conditions of the original settlement.
The company said in a statement that the amended settlement clarifies both parties' understanding of the agreement.
The state alleged the company violated state consumer protection laws through deceptive marketing practices, including misrepresenting its insurance as a government veteran's benefit.
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Mass. insurance settlement raised to $5.25M
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