For Immediate Release: March 25, 2011

Insurance Commissioner Goodwin Fines CIGNA HealthCare of North Carolina $600,000

Issues refunds and credits to overcharged policyholders.

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced a settlement with CIGNA Healthcare of North Carolina, Inc. over violations discovered during a routine market conduct examination. The settlement resulted in a fine of $600,000. As required by state law, the monetary penalty collected will be distributed to the state public school system.

During CIGNA's market conduct examination that began in September 2005 and covered the period of 2002 through 2004, the Department of Insurance found a variety of violations including, but not limited to:

In addition to the $600,000 fine, refunds and credits totaling $637,974.98 were issued to affected employer group policyholders due to the company's failure to accurately and consistently calculate premium rates. Undercharges in excess of $1.3 million that occurred during the same time period as the overcharges were factored in when determining the credits and refunds.

Refunds were issued in August 2010; however CIGNA was unable to reach some of the affected employer groups. To see a list of companies still owed a refund, visit CIGNA's website by clicking on this link, or call CIGNA at 704-540-3021 for more information.

Cigna Healthcare of North Carolina, Inc Premium Reimbursements 2002 Through 2004

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