The Texas Attorney General's Office is investigating Genworth Financial's long term care insurance practices. It comes on the heels of another investigation of long term care insurance practices by Conseco in which the insurer agreed to pay $6.3 million in fines.

Genworth Financial investigation

Although not published on the Texas Attorney General's website, new reports show that Genworth Financial's 10-Q financial statement (a comprehensive report of a company's performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission [SEC]) filed on November 10th included information that the insurer's long term care book of business is under investigation and that the insurer plans to cooperate with the Attorney General's Office. The news comes on the heels of another investigation of long term care policies in which Conseco paid dearly.

The Conseco settlement

The recent $6.3 million Conseco settlement involved two of the insurer's subsidiaries - Banker's Life and Casualty Company and Conseco Senior Health Insurance Company. The underlying investigation by the Texas Attorney General's Office alleged that the companies improperly processed claims, improperly handled complaints and marketed and sold policies that violated state laws. The settlement involved 40 separate jurisdictions and the companies agreed to pay a $2.3 million penalty with the remaining funds going to policyholders.

Long term care insurance violations increasing

The Texas Attorney General's investigations may be a sign of things to come for long term care insurers nationwide. Many people purchased this type of insurance years ago to pay for long term care associated with nursing homes, assisted living facilities, home health care, adult day care and visiting nurses. However, the insurance industry didn't realize that health care costs would increase as much as they have over the past decade and many insurers are acting in bad faith and simply refusing to pay.

Consumer advocate groups and bad faith insurance lawyers report that insurers are taking advantage of policyholders, many of whom are elderly or disabled, by making the claims process so difficult that policyholders are simply giving up.

Policyholders should know that insurance companies cannot deny them valid benefits. If that happens, it may be time to contact an attorney whose practice focuses in bad faith insurance practices to protect their interests. Click here to discuss your situation with a qualified long term care attorney. Consultations are free, without obligation and are strictly confidential.