This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

WellPoint Falls on Subsidiary Accusations

NEW YORK ( TheStreet) -- WellPoint (WLP) shares fell as much as 1.5% Tuesday after the California Insurance Commissioner said late Monday that subsidiary Anthem Blue Cross could be fined $7 million for claims handling irregularities.

Following an investigation into consumer complaints, California Insurance Commissioner Steve Poizner said the insurance department had found more than 700 violations of state's claims handling law.

Wellpoint failed to respond to state requests to hand over certain documents to investigate consumer complaints, according to SNL Financial. Additionally, it misrepresented policy provisions to consumers, SNL Financial said.

Poizner said that if these violations are proven to be willful, Anthem Blue Cross would face a maximum penalty of $10,000 for each violation committed from 2006 through 2009. These fines would not help a company that is already intending to increase rates for its policyholders by up to 39% because it claims it is losing money in California.

WellPoint stock is down 1.1% to $58.80 in recent trading.

--Reported by Gavin Magor in Jupiter, Fla.
Gavin Magor is the senior analyst responsible for assigning financial-strength ratings to insurance companies. He conducts industry analysis and supports consumer products. Magor has more than 22 years of international experience in operations and credit-risk management, commercial lending and analysis. His experience includes international assignments in Sweden, Mexico, Brazil and the U.S. He holds a master's degree in business administration from The Open University in the U.K.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
WLP $136.01 1.43%
AAPL $125.62 -0.30%
FB $87.25 -0.34%
GOOG $525.16 0.44%
TSLA $266.66 -4.70%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs