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Article: TPA awarded $2.5M in Col. Penn suit. (third party administrator, Colonial Penn Life Insurance Co.)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- June 11, 1990
- Author:
CopyrightCOPYRIGHT 1990 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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TPA Awarded $2.5M In Col. Penn Suit
CHICAGO--A federal jury here has found Colonial Penn Life guilty of breach of contract in a 1987 suit brought by a third party administrator and ordered the Philadelphia-based insurer to pay the firm $2.5 million in damages related to lost profits.
Daniel Kubik established Hallmark Insurance Administrators Inc. in 1987 under an agreement whereby the Westmont, Ill.-based TPA was to administer and service a new major medical association group policy to be sold by Colonial Penn, according to Hallmark's attorney, Herbert Beigel.
"After Colonial Penn signed its agreement with Hallmark and the TPA was established," ...