Has asked Neptune Management for a penalty of $1.2 million for breaching the state insurance laws
Colorado’s Division of Insurance has asked Neptune Management Corporation, dba, The Neptune Society, a penalty of $1.2 million for breaching the state insurance laws – reported in Claims Journal.
The primary guilt against Neptune was that the company exaggerated charges for funeral urns and other merchandise products, to reduce the quoted price for pre-need funeral services. By law, 75% of the price for pre-need funeral services, including cremation, must be placed in trust until the services are used.
Neptune has reportedly agreed to pay a civil penalty of $1.2 million, for infringing provisions of Colorado Insurance Law. However, $600,000 of the civil penalty will be waived if Neptune abides with the provisions to place consumer money in trust.
The law is intended to protect the consumer’s money against the possibility the contract is not fulfilled at a later date, whether the company is unable to fulfill the services, or whether the consumer chooses not to use them.