Nation’s Leading Expert Warns Against Purchasing Supplemental Insurance From Conseco

February 23, 2009.

Less than 90 days after abandoning America's elderly, Conseco Insurance is out with a "white paper" encouraging people to buy supplemental insurance policies, says Frank N. Darras, the nation's leading disability and long-term care insurance lawyer.

Darras warns against purchasing a supplemental policy from Conseco. In 2008 alone, Conseco was investigated, charged and fined $32 million for not handling long-term care claims in a timely manner, not maintaining or properly documenting claims files and taking too long to respond to claimants. See www.darrasnews.com.

In addition, when the 40-state settlement with Conseco was reached with the Pennsylvania Department of Insurance, acting Commissioner, Joel Ario, stated the action was "necessary due to a pattern of consumer harm in the company's long-term care insurance business," says Darras.

In August, 2008, without any warning to its policyholders, Conseco moved nearly 171,000 long-term care premium paying senior citizens into a self-insured senior trust that will diminish and lose its value as more and more elderly go on claim, says Darras. See www.savemyltc.com.

"Conseco had for years, underpriced and oversold their long-term care product. When long-term care started losing money, Conseco decided to use a legal loophole in Pennsylvania insurance law and dump faithful policyholders into this trust. The way it has been structured sets up seniors, on fixed incomes to pay multiple premium increases they cannot afford. Many seniors will be forced to lapse their policies after spending tens of thousands of dollars for this supplemental insurance," says Darras.

Sadly, the company's mission, stated on the website, has not been consistent with their treatment of policyholders. Canseco's mission says, "to be a leading provider of financial security for life, health and retirement needs of middle market Americans." America's senior citizens have been duped and dumped by a company whose new catch phrase is "step up", says Darras

"In many cases, supplemental insurance is a good bet and can be affordable for many families," says Darras. "I always advise folks to make sound decisions and to research the history and financial health of a company before purchasing insurance. Why spend your hard earned premium dollars on a company that has failed to 'step up' when it mattered most?"