NY Dep’t of Insurance creates special elder fraud unit

Superintendent Eric Dinallo has announced the formation of the NewYork State Insurance Department Elder Protection Unit, which he saidwill support elderly residents in dealing with their insurance concerns.
“Job one is to protect consumers, and the elderly are among the mostvulnerable,” said Dinallo. “We have established this unit because wehave seen a growing number of complex insurance issues directlyaffecting seniors and a growing number of complaints. Seniors mustnavigate an array of insurance offerings, including an expanding lifesettlement industry, Medicare Advantage and supplemental plans, longterm care insurance and community care residential centers.”  Dinallo cited reports of unfair and deceptive sales practicesresulting in seniors being sold insurance products they do not fullyunderstand as one reason for forming the unit. He identified assistedliving coverage, the suitability of products for seniors and deceptivemarketing practices with both life insurance and annuities as the areasof prime concern.  “We will relentlessly pursue any agent, broker or insurer whoengages in deceptive or illegal practices against New York’s seniors.We will work to educate consumers on the many options available to themand the challenges those may offer,” he vowed.  The Elder Protection Unit will, among other things, set standardsfor insurers, agents and brokers in the sale of insurance products forsenior citizens; initiate studies and special examinations to ensurethat the insurance marketplace serves the needs of senior citizens; andformulate legislative and regulatory proposals.

Source/more:  Insurance Journal, http://www.insurancejournal.com/news/east/2007/09/12/83435.htm