Delaware Insurance Commissioner Karen Weldin Stewart said The Hartford has agreed to refund over $150,000 to nearly 1,300 auto insurance customers due to the mishandling of the company’s rate filing for its AARP auto insurance program in the state.
The dispute between the Department of Insurance and The Hartford arose over the company’s 2008 rate filings. It all started when former Commissioner Matt Denn disapproved the company’s rate filings after they became effective. Despite the disapproval, The Hartford continued charging policyholders with those rates.
As part of a settlement reached with the department, the Hartford will re-rate all of the policies that were renewed at the incorrect rate, in effect restoring the policies to the pre-2008 rates. Policyholders who paid their 2008 premiums in advance will receive refunds and those paying premium in installments will receive credits on future bills.
The settlement affects 1,276 Hartford policyholders who will receive refunds or credits totaling $151,551. “The settlement with the Hartford achieves a substantial savings for a significant number of Delaware consumers,” Commissioner Stewart said.
Source: Delaware Insurance Commissioner
Topics Auto
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