Connecticut Insurance Regulators Recovered $2.4M for Consumers in Q2

July 19, 2012

Connecticut Insurance Commissioner Thomas Leonardi announced Thursday that the insurance department recovered $2.4 million for policyholders and state taxpayers in the second quarter.

Leonardi said the department’s consumer affairs unit fielded about 1,600 complaints and inquiries and helped policyholders recoup $906,000 from April 1 through June 30.

Also during that same period, the market conduct division levied more than $1.5 million in fines against carriers and returned that money to the state general fund. The fines resulted from a variety of violations and settlements ranging from untimely claim payments to improper licensing.

“Every day we assist consumers in making informed decisions and understanding their policies. The department’s comprehensive reviews of company business practices and enforcement of state laws help ensure that policyholders are treated fairly and rightfully reimbursed for insured losses,” Commissioner Leonardi said.

“Department examiners have a wealth of expertise in all types of insurance and their advocacy on behalf of consumers gets results.”

Since January 1, the department has recovered more than $4 million for policyholders and state taxpayers, the commissioner said.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident and homeowners policies. The breakdown of funds recovered from April 1-June 30 is as follows:

• Accident, health – $542,958
• Auto – $94,853
• Fire and commercial – $490
• General liability – $34,310
• Homeowners, farmers – $190,667
• Life, annuities – $32,382
• Miscellaneous – $10,418

The department calculates the amount it recovers based on what the consumer received as a result of the department’s intervention. The consumer affairs unit analyzes the inquiries each quarter, identifying trends that may affect consumers. This data helps determine topics for consumer education and as tools to help the department monitor the industry. The market conduct enforcement actions are posted on the department’s website.

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