RNA delegate files complaint with state agency

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| Monday, September 22, 2003 12:14 AM CDT | () comments

Craig Cooper

Royal Neighbors of America national delegate Val Meigs has filed a complaint with the Illinois Department of Insurance about operations of the fraternal benefit society.

Meigs, of Atlantic Beach, Fla., has been an outspoken critic of the Rock Island-based insurer in recent months. Meigs recently was unsuccessful in attempts to force Royal Neighbors to reconvene its national convention to address complaints about the society's management.

In the complaint to the state insurance agency, Meigs said, "many delegates and members are gravely concerned about the direction RNA has taken in the past few years.''

Among the complaints are that RNA had a net income loss of $39,583,000 in 2002.

Meigs also detailed RNA's financial support of a women's volleyball league that did not play one regular season. She claims RNA initially supported United States Professional Volleyball with $3 million, then a discounted rate for additional years.

Meigs charges that a sales system that was quickly discontinued also affected the present financial condition of Royal Neighbors.

Meigs also cited the dispute between Royal Neighbors executives and the organization's own board of directors. That dispute over compensation for the directors resulted in a suit being filed by the executives against the board of directors. The suit has not been heard in court.

In the meantime, Dr. Paula Arnell, who had been medical director and a board member of RNA, resigned. Her position, which could possibly sway the board on the issue of whether to reconvene the convention, has not been filled. Five board members would have to vote in favor of a convention.

Meigs said at least 37 other national delegates and policy holders, called members by Royal Neighbors, have signed the same complaint and submitted it to the Illinois Department of Insurance.

Rita Toalson, spokesman for Royal Neighbors, said the organization received a copy of the complaint late last week, but apparently not from the Illinois Department of Insurance.

"Most of the issues have been addressed before and much of the information remains inaccurate,'' Toalson said. "We have not received notification from the state regarding the letter so we can't begin to speculate how the state would begin to handle a correspondence like this.''

Bill McAndrew, spokesman for the Department of Insurance, said the complaint will be sent to Royal Neighbors headquarters this week for response. If the response is not satisfactory to the Department of Insurance, he said the procedure is to correspond further with Royal Neighbors.

McAndrew said complaints received by the Department of Insurance usually are made by individuals, not groups.

"Usually it is a specific claim from an individual that an insurance company is not covering some medical procedure or covering a repair to a home,'' McAndrew said. "Generally they are not of this nature.

"I don't remember many complaints like this.''

Royal Neighbors has been attempting to cut expenses in recent months. In June the organization reduced the number of field managers to cover 43 states where Royal Neighbors operates. Royal Neighbors also has offered an early retirement incentive to reduce costs of running the headquarters.

It is unknown how many RNA employees plan to take the early retirement option.

Craig Cooper can be contacted at (563) 383-2360 or ccooper@qctimes.com.