Connecticut Insurance Commissioner Thomas B. Leonardi announced that the Connecticut Insurance Department recovered nearly $1.6 million for policyholders and taxpayers in the first three months of 2014.
“The Department is here to assist consumers navigate the complexities of their policies and make sure that carriers deliver on their commitments to their customers,” Commissioner Leonardi said.
“Our free assistance is used by thousands of consumers each year. I strongly encourage policyholders to contact the Department with any question or complaint they may have and take advantage of our expertise and resources,” the commissioner added.
Officials said the Department’s Consumer Affairs Unit (CAU) fielded more than 1,700 complaints and inquiries and helped policyholders recoup more than $510,000 from Jan. 1 to March 30.
The Department’s Market Conduct Division fined carriers approximately $1.04 million, for deposit to the General Fund and for continued consumer outreach and education. 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 in the first quarter is as follows:
• Accident, Health – $324,000
• Auto – $65,000
• General Liability – $1,400
• Homeowners, Farmers – $97,200
• Life, Annuities – $10,800
• Miscellaneous – $13,000
In 2013, consumer recoveries and industry fines totaled approximately $7.3 million.
The Department said it 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.
Source: Connecticut Insurance Department