The Department of Banking and Insurance announced today that it issued fines and ordered the return of funds owed consumers totaling $12.5 million in the first half of 2018. Fines adding up to $4.1 million were imposed on companies and individuals for violations of state insurance, banking, and real estate laws.
In the first quarter of 2018, licensees and carriers were ordered to repay real estate, insurance, and banking consumers $5 million as part of DOBI investigations resulting from formal complaints. The department also imposed a total of $2.7 million in fines.
“These actions should send a clear message that the Department takes very seriously its mission to ensure that New Jersey residents are protected and regulated entities are operating in compliance with the law,” said Commissioner Marlene Caride.
First-quarter enforcement actions included a $2.5 million fine paid by UnitedHealthcare Insurance Co., the largest fine in nine years, for various insurance violations. Infractions by UnitedHealthcare and its affiliates, AmeriChoice of New Jersey, Oxford Health Insurance, and Oxford Health Plans (New Jersey) included use of a nondesignated provider of hemophilia services and supplies for nine months. They also included failures to promptly comply with decisions of the Independent Health Care Appeals Program that reversed denials of claims and authorizations.
Fines imposed in the second quarter of 2018 amounted to $1.4 million. A total of $3.4 million was ordered to be returned to consumers by licensees and carriers.