Athene Holding has responded to a regulatory notice from the California Department of Insurance (CDI) that has proposed fines and the temporary closure of its subsidiary, Athene Annuity and Life Company, for allegedly failing to meet California service standards for around 50,000 life insurance policies.
The CDI said that, since 2016, it has received over 100 consumer complaints related to administration issues on a set of California life insurance policies that were reinsured to Accordia Life and Annuity Company by Athene Annuity and Life Company, formerly known as Aviva USA.
According to the notice, Athene’s acquisition of Aviva USA was pending when, in May 2013, Accordia’s parent company, Commonwealth, agreed to assume responsibility for a $10 billion book of 500,000 life insurance policies from Aviva USA, 50,000 of which were issued to Californians.
During the system migration process, which was administered by third party sub-contractor Alliance-One Services, the policies were placed in a ‘restricted status’, meaning they could not be administered electronically, which led to a number of processing issues. Officials say hundreds of these policies currently remain restricted. (read more)