Insurance regulators yesterday released results of a multistate market conduct examination of Texas-based HealthMarkets Inc., citing numerous deficiencies in its subsidiaries’ operations. Iowa joined 34 other states and the District of Columbia in the investigation, which was led by Washington and Alaska.

“Our examination stemmed from the volume, scope and nature of complaints made against the companies by consumers and policyholders in several different states,” Washington Insurance Commissioner Mike Kreidler said in a release. Kreidler also chairs the National Association of Insurance Commissioners’ Market Regulation and Consumer Affairs Committee.

The HealthMarkets companies examined included MEGA Life and Health Insurance Co., Mid-West National Life Insurance Co. of Tennessee and Chesapeake Life National Insurance Co. MEGA agents sold policies through the National Association for the Self-Employed and Americans for Financial Security. Mid-West agents sold plans through the Alliance for Affordable Services. HealthMarkets was known as UICI prior to its acquisition in 2006 by a consortium led by the Blackstone Group.

According to the Iowa insurance commissioner’s office, these companies received $8.8 million in accident and health premiums from Iowa residents in 2006, the most recent period reported. That represented only about 0.2 percent of the $4.5 billion in premiums paid in Iowa in 2006, spokesman Tom Alger said.

In the 112-page examination report, which covers a five-year period, state regulators cited deficiencies related to oversight and training of agents, processing and handling of claims, disclosure to policyholders of relationships with membership associations and affiliated companies, handling of policyholder complaints and adherence to a compliance plan.

A multistate settlement group headed by Washington and Alaska will determine which enforcement actions will be applied to the companies and corrective actions that will be required. A settlement agreement is expected to be completed this spring.