New York insurance regulators have handed out some sizable fines in the last several months, according to a new report, including a $360,000 fine for a large national insurer that overcharged auto insurance customers over several years.
Clarendon National Insurance paid the fine for violations of state insurance law that occurred from June 2003 to December 2009, according to New York Insurance Department documents obtained by Insurance Journal. The penalty also covers Clarendon’s failure to take steps to minimize premiums errors. Clarendon -which is a subsidiary of Hannover Re, and currently in the process of being run off by Hannover – paid the fine in March.
It wasn’t the only firm slapped with a six-figure fine. Illinois-based Hewitt Insurance Brokerage paid $136,800 after regulators found the company allowed unlicensed employees conduct insurance business. The fine covers the period of Jan. 2005 to Dec. 2007. It is the first time Hewitt has been fined by New York regulators.
Several other companies paid smaller fines for exceeding the number of non-renewals that can be issued in a calendar year. Those companies and their fines were: Preferred Mutual Insurance Co., which paid $21,200; Autoone Select Insurance, part of OneBeacon Group, paid $8,400; Sentry Select Insurance Co., paid $4,500; and Chubb, which paid $2,800.
In addition, more than 50 agents were fined anywhere from $750 to more than $8,500 for a wide range of violations; more than a dozen agents lost their licenses in the Empire State.
Topics New York
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