Class-Action Lawsuit Accuses Nationwide Insurance of Selling Illegal Health Policies in Washington State
Attorneys for more than 400 Washington state residents on Wednesday filed a class-action lawsuit against Nationwide Insurance claiming that the company marketed fixed-payment indemnity health plans without authorization from the state insurance commissioner's office, the Seattle Times reports. According to the lawsuit, Nationwide "unfairly and deceptively" sold the plans, which did not comply with laws that require plans to provide certain minimum benefits.
Fixed indemnity plans have lump-sum payout limits based on the amounts that insurance companies provide, the Times reports. Nationwide spokesperson Joe Case said that while he knew of the lawsuit, he would not comment on it before he had reviewed it (Ramirez, Seattle Times, 4/16).