Transamerica Life Insurance Company will pay $1.3 million to settle allegations that it sold and marketed unauthorized health insurance products to Massachusetts consumers and failed to cover mandated benefits required by state law.

Massachusetts Attorney General Martha Coakley charged the Iowa based insurer with selling health insurance policies to Massachusetts consumers that were not authorized for sale.

The complaint alleges that Transamerica violated the state’s Consumer Protection Act by failing to cover health services required by Massachusetts law, including mental health, “pap” test screening, mammography, and preventive care for children up to age six.

“Massachusetts consumers should be confident that the health insurance they purchase complies fully with the law,” Coakley said. “Our office will continue to vigorously pursue health insurers that sell unauthorized insurance or fail to pay benefits mandated by law.”

Under the terms of the consent judgment, Transamerica must pay $1,330,000 to the state and to consumers.

This includes $750,000 in consumer relief for Massachusetts consumers who were sold the unauthorized plans or were unlawfully denied insurance coverage for certain mandated benefits, and $580,000 to the state composed of $250,000 for civil penalties, $300,000 for the Local Consumer Aid Fund and $30,000 for the costs of the investigation.