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UNUM Group, a Chattanooga-based insurance company with a spotty record, will pay $5.5 million to the U.S. government for failing to report special fees it was paying to a San Diego insurance broker in a group insurance plan. The Employee Retirement Income Security Act of 1974, called ERISA, requires disclosure of special fees paid to agents. As a result, the institution that was getting insurance through UNUM paid higher premiums, according to the U.S. Attorney's office. In a news release, that office did not identify the agent who got the payments, or say that he will be punished. "The investigation is continuing," says Lawrence Casper, one of two assistant U.S. attorneys who prosecuted the case. The Department of Labor has undertaken a study of the claims history of UNUM going back to 1997. In May of this year, a federal judge in Chattanooga approved a $40 million settlement in a five-year-old case brought by shareholders charging the company inflated the price of its stock.
UNUM Group, a Chattanooga-based insurance company with a spotty record, will pay $5.5 million to the U.S. government for failing to report special fees it was paying to a San Diego insurance broker in a group insurance plan. The Employee Retirement Income Security Act of 1974, called ERISA, requires disclosure of special fees paid to agents. As a result, the institution that was getting insurance through UNUM paid higher premiums, according to the U.S. Attorney's office. In a news release, that office did not identify the agent who got the payments, or say that he will be punished. "The investigation is continuing," says Lawrence Casper, one of two assistant U.S. attorneys who prosecuted the case. The Department of Labor has undertaken a study of the claims history of UNUM going back to 1997. In May of this year, a federal judge in Chattanooga approved a $40 million settlement in a five-year-old case brought by shareholders charging the company inflated the price of its stock.