Kreidler fines insurer of WSU student plans

National Union filed blanket accident and sickness health plans for students at WSU just before the start of the 2014-15 academic school year that did not comply with state insurance regulations.

National Union Fire Insurance Co., Harrisburg, Penn. was fined $110,000 and fined $200,000 by Insurance Commissioner Mike Kreidler.

National Union filed blanket accident and sickness health plans for students at WSU just before the start of the 2014-15 academic school year that did not comply with state insurance regulations because of the way the company figured the rates. To minimize disruption to students, the Insurance Commissioner agreed to let the students keep the plans for that school year and would disapprove the plans at the end of the term in August 2015. National Union agreed to pay a fine of $200,000 for noncompliant plans for the 2014-15 school year and to make sure 2015-16 school year plans comply with state insurance regulations.

National Union also received a $110,000 fine for raising rates 4.97 percent for the 2011-12 school year at WSU without filing a rate increase request with the Insurance Commissioner. In all, 3,462 students were charged the higher unfiled rates.