The Vermont Department of Financial Regulation (DFR) announced that Travelers Insurance and Liberty Mutual Insurance have paid Vermont $154,000 in fines and repaid consumers another $54,500.
DFR said in March that the two insurers paid the department fines totaling $154,000 for violating Vermont laws regarding the timing of policy cancellation and renewal notices, faulty practices when investigating auto liability claims and in one case, wrongly calculating auto accident deductibles.
Liberty Mutual paid an administrative penalty of $38,000 for inappropriately notifying consumers of the cancellation or non-renewal of homeowners’ policies in 2013-14. An administrative penalty of $20,000 was assessed for incorrectly calculating auto accident claims. The company voluntarily repaid policyholders more than $18,000 in addition to the administrative penalty.
Travelers paid an administrative penalty in the amount of $96,000 for the same violations and for incorrectly requiring some policyholders to pay deductibles following auto accidents between 2011 and 2013. The company has paid restitution to those Vermonters in the amount of $34,584.
DFR said both Liberty Mutual and Travelers agreed to modify policies and procedures when investigating auto accidents. In addition to further training, adjusters will conduct more in-depth interviews, obtain police reports, compile photographic evidence and consult with experts. They will also modify record keeping to establish more complete documentation.
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