View this article online: https://www.insurancejournal.com/news/east/2013/06/07/294773.htm

Connecticut Regulators Recovered $2.3M for Policyholders, Taxpayers in Q1

Connecticut Insurance Commissioner Thomas Leonardi recently announced that the state’s insurance department recovered nearly $2.3 million for policyholders and taxpayers in the first three months of 2013.

“Consumers do not have to tackle their insurance problems alone,” Commissioner Leonardi said. “The Department regularly helps hundreds of policyholders each year settle disputed claims, have their policies reinstated or gain a better understanding of their coverage.”

“As we head into the Atlantic hurricane season, it is extremely important that homeowners know exactly what their policy covers and the Department’s Consumer Affairs Unit is a free resource they can use to help determine that,” the commissioner said.

He said the insurance department’s consumer affairs unit fielded more than 1,800 complaints and inquiries and helped policyholders recoup nearly $1.3 million from January 1 to March 30. The unit recovers approximately $4 million each year on behalf of consumers.

Additionally, the department’s market conduct division levied more than $902,000 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.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The breakdown of funds recovered for the first three months of 2013 are:

• Accident, Health – $1 million
• Auto – $63,000
• Fire and Commercial – $50,000
• General Liability – $2,500
• Homeowners, Farmers – $91,000
• Life, Annuities – $71,000
• Miscellaneous – $17,000

The department calculates its consumer recoveries based on what the policyholder received as a result of the department’s intervention. The inquiries and complaints also help the department identify industry trends that may adversely affect consumers and trigger investigation by the market conduct division.

This data also helps determine topics for consumer education and serve as tools to help the department monitor the industry. The market conduct enforcement actions are posted on the department’s Web site at www.ct.gov/cid.

Source: Connecticut Insurance Department