Olympia — Ability Insurance Co. is prohibited from writing new policies in Washington for six months, following an order issued Wednesday by Insurance Commissioner Mike Kreidler.
The order stems from the company’s failure to honor long-term care coverage that lapsed after a senior citizen with dementia failed to make her payments. In such situations, state law allows consumers to reinstate coverage within five months of a policy’s lapse.
The claims of those who hold existing policies from Omaha, Neb.-based Ability Insurance will still be paid, said Rich Roesler, a spokesman for Kreidler. Ability policyholders also may still renew existing policies.
It’s unclear how many holders of Ability insurance there are in Clark County. Kreidler imposed a fine of $10,000 on Ability. The company has the right to demand a hearing.
