MONTPELIER, Vt. (WCAX) Vermont top financial regulators have reached a settlement with a South Carolina insurance company that sold inadequate insurance to students.
From 2014 to 2016, Companion Life Insurance sold incomplete health insurance plans to 2,500 Vermont students.
The state recently reached the $1.8 million settlement which will be paid out to hundreds of students. These students attended colleges such as Champlain College, Green Mountain College, Middlebury College and several others.
It is the largest settlement ordered by Vermont officials against an insurance company.
Some 212 Vermont students are set to receive anywhere from hundreds to tens of thousands of dollars to make up for claims that were wrongfully denied.
"These are students that had pretty horrific athletic injuries. They had months and months of recuperation, thousands and tens of thousands of dollars in bills. These are students that were charged for mental health treatment that they shouldn't have been charged for," Financial Regulation Commissioner Mike Pieciak said.
Companion Life will also have to pay $950,000 to the state and $150,000 to the state's victim restitution fund.
WCAX News contacted Companion Life and they said that they are a wholly-owned subsidiary of Blue Cross Blue Shield of South Carolina. We reached out to Blue Cross but had not yet heard back when this story was published.