Auto insurer Lyndon Southern Insurance Company has paid a maximum $350,000 fine after the Louisiana Department of Insurance performed a comprehensive market conduct examination of the company and found 32 instances of improper activity and/or business practices that were noncompliant with the state’s insurance code.
The LDI said it received a high number of complaints of Lyndon Southern, which led to a market conduct exam.
“Violations were found in the areas of operations and management, complaint handling, underwriting and rating practices, and claims handling,” LDI said in a statement.
Among the top violations in the fine notice were:
- Failing to conduct a periodic on-site review of the underwriting and claims processing operations.
- Failing to rescind policies containing material misrepresentations and refunding premiums paid thereon then denying policyholder claims based upon the material misrepresentations.
- Failing to pay interest on premium refunds that were paid later than 30 days after they were due.
- Issuing a policy using expired base rates.
Lyndon Southern was fined $250,000 for unfair or deceptive acts and practices and $100,000 for other violations of the insurance code. LDI’s investigation covered Lyndon Southern’s actions between Jan. 1, 2015 to July 31, 2018.
The insurer did not appeal the findings and has paid the fines in full, LDI said.
Lyndon Southern is based in Jacksonville, Florida and has been licensed in Louisiana since 1997.
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