Connecticut Collected $4.1M in Market Conduct Fines Last Year

The Connecticut Insurance Department says its market conduct division collected over $4.1 million in fines from insurance companies and agents in 2008 — more than three times the amount collected in 2007.

In 2007, the department collected $1.3 million for state law violations. The dramatic increase in fines stemmed from a $2.1 million fine against Assurant Health companies for violations to Connecticut insurance laws and regulations arising under short-term health insurance policies.

“Effective consumer protection is the hallmark of state regulation,” said Commissioner Thomas Sullivan. “Compliance with our state’s laws is paramount to ensuring consumers are protected.”

The most frequent violation last year were those levied against unlicensed or non-appointed agents. Connecticut, unlike other states, requires that agents be both licensed to sell insurance with this state and appointed by the insurer through the Insurance Department.

The market conduct division examines insurance companies, healthcare centers, fraternal benefit societies and medical utilization review companies doing business in Connecticut to analyze how the insurance market and the individual companies meet and service consumers’ needs.

Source: Connecticut Insurance Department