AUTO INSURERS AGREE TO HAWAII FINES

Seven of Hawaii’s largest auto insurance companies who have been under investigation for allegedly using prohibited criteria to determine premiums, have agreed to pay fines totaling $115,500. The seven companies—AIG Hawaii, Allstate Group, RLI, Maryland Casualty Company (Zurich), Hartford, State Farm Group, and USAA Group, account for approximately 60 percent of the state’s auto insurance market. Four other companeis—TIG, HIG, DTRIC, and Progressive—have also been under investigation, and are pending resolution. Companies found to be in compliance with Hawaiian law include Island Insurance, GEICO, First Insurance, and Liberty Mutual. Hawaii’s Insurance Division began its investigation last August, when it was reported that State Farm owned companies were using credit bureau information as a factor in determining policyholders’ premiums. Of the companies fined, State Farm Group paid the largest amount at $40,000.

Topics Carriers Auto