On April 8th 2006, the California Department of Insurance (CDI) announced that it has begun legal proceedings against The Hartford Insurance Group, alleging that the company charged illegal fees.
The CDI contends that Superior Access Insurance Services Inc., with Hartford’s knowledge, added unapproved fees to the premium Hartford is allowed to charge by law on workers compensation and commercial policies.
In a letter to Insurance Journal, the company said: “Superior Access is an insurance wholesale intermediary. In that capacity, Superior Access has never charged an insurance customer any fees or premiums. All Superior Access business is conducted solely with licensed insurance brokers and not with insurance customers. Fees charged to brokers are not required to be filed with the CDI as part of the insurer’s rate filing.
“Under broker fee regulations enacted by the California Insurance Commissioner, fees are expressly excluded from the regulations. Transaction fees are regularly charged by wholesalers to brokers for services rendered.
“Superior Access is dedicated to providing quality service and insurance products to insurance brokers. The company is working diligently with regulators and legal counsel to resolve the allegations raised by the CDI.”
Topics California Agencies
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