A major life insurance company has decided to stop selling some types of policies in Colorado, according to a story from the Boulder County Business Report.
At issue, the Business Report said, is Aetna Life Insurance Company's supposed inability to make a dent in the state's market for individual health coverage, as detailed in a letter the paper says was sent from one of the company's lawyers to the state division of insurance late last year.
Coverage under the cancelled plans will disappear by August 2012, and the Business Report wrote that the company would begin mailing 180-day discontinuance notices to affected customers on February 1. The paper also noted that Aetna had already withdrawn child-only coverage, as well as small-group policies for businesses with one to 50 employees, several months earlier.
When a life insurance provider cancels its service, policyholders typically have a set period of time to re-enter the market before their coverage expires, so consumers don't need to worry about suddenly being unprotected in the case of a tragedy that costs a family its breadwinner.