Dallas Fire Insurance Co. agreed to pay $100,000 in penalties for overcharging consumers by adding unapproved policy fees to the price it charged for credit property insurance. In a consent order, Dallas Fire also agreed to cease and desist from charging or collecting more than the credit property insurance rates approved by the Texas Department of Insurance.
In agreeing to the penalty and to an order to discontinue the policy fees, Dallas Fire did not admit to any violation of Texas insurance laws. Credit property insurance pays when property is stolen, damaged or destroyed while a consumer is still paying for it through such means as a credit card or installment plan.
Dallas Fire Insurance Co. is a Texas-licensed carrier with headquarters in Fort Worth. TDI investigators found that Dallas Fire had added a “policy fee” of $3.68 per $100 of coverage to the amounts it charged consumers. This fee was on top of the company’s approved rate of 22 cents per $100 of coverage but was neither filed with nor authorized by TDI.
Topics Texas
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