Targeting elderly - Conseco - 5th Worst Insurance Company

By selling long-term care policies to the elderly that can no longer advocate for themselves, Conseco exploits its clients’ vulnerability by delaying claims until their policyholder passes away. This abusive tactic has earned Conseco the number 5 spot on the Top 10 Worst Insurance Companies in America.

Headquarters: Indianapolis, IN

Profits: $179.9 million

Assets: $33.5 billion


  • By targeting the elderly, Conseco uses their vulnerability as an advantage by delaying and denying valid claims until the policyholder gives up or dies.
  • Conseco, Bankers, and Penn Life have had numerous complaints filed with state regulators over long-term care insurance, particularly in regard to claims handling, price increases, and advertising methods.
  • In 2002, the company was $6.5 billion in debt and was forced into bankruptcy.
  • Former CEO was sued for more than $250 million over company-backed loans and debt, and two other Conseco executives were also sued for fraud.
  • In 2006 an adjustor admitted that company policy forbade her from calling physicians or nursing homes to request paperwork before denying claims.
  • Another Conseco employee was told to withhold payment on claims until the policyholder submitted documents that weren’t required under the terms of the policy.
  • The National Association of Insurance had to broker a settlement between Conseco and 39 states including the District of Columbia because of abuse claims in its long-term care business.
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