Connecticut Fines GEICO $178K

The Connecticut Insurance Department has fined four GEICO subsidiaries a total of $177,500 for improper rating, claim delays and the use of unlicensed adjusters among other violations.

The total fine is a result of smaller fines assessed to four subsidiary companies. The fines follow a market conduct exam of GEICO operations in the state.

“We will continue to scrutinize companies in this industry to ensure they are committed to conducting business within the boundaries of our insurance laws,” Commissioner Thomas Sullivan said.

While the violations varied by the subsidiaries, most failed to comply with state law that requires that optional coverage for safety glass repair or replacement be offered at all deductible levels.

Connecticut law requires insurance companies to formally appoint and license with the state all agents who sell, solicit, and negotiate insurance products on their behalf. The market conduct examination revealed instances of unlicensed adjusters within these subsidiaries.

Other violations included instances where companies did not include in their settlement, the amount attributed to one’s inability to use their property, commonly referred to as ‘loss of use’.

Topics Connecticut