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Augusta, Maine -

The Maine Bureau of Insurance today announced that MEGA Life has received approval of a methodology for refunding overpaid premiums to consumers. MEGA will commence issuing refund checks immediately.

In April, the Bureau of Insurance fined MEGA Life $1,000,000 for using a flawed method to determine premiums for individual health insurance policies. MEGA Life had 30 days from the date of the original decision to notify the Bureau of Insurance of the method it was using to allocate the restitution to specific policyholders. MEGA originally was scheduled to return $4.6M in unpaid premium but due to self reported errors in implementing previous rate changes for certain products, that figure has increased to $5.6M.

“We are pleased that MEGA Life is acting quickly to issue the checks,” stated Insurance Superintendent Mila Kofman. “We expect checks to begin to be processed today. If anyone has a question or is wondering if they will be receiving a check, they should contact our Consumer Assistance Hot Line at 1-800-300-5000 or MEGA at 1-800-527-5504.”

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

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Last Updated: April 7, 2009 2:44 PM