STATE OF CONNECTICUT
Thomas B. Leonardi
Insurance Department Recovers
$8.7M for Policyholders, Taxpayers in 2012
Insurance Commissioner Thomas B. Leonardi announced today that the Connecticut Insurance Department recovered approximately $8.7 million for policyholders and state taxpayers in the 2012.
The Department’s Consumer Affairs Unit (CAU) fielded more than 6,100 complaints and inquiries and helped policyholders recoup nearly $4.1 million from January 1 to December 31, with just over $1.1 million recouped in the final three months of 2012.
The Department’s Market Conduct division levied more than $4.6 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.
“The Department is here to help consumers fight wrongful claims denials, unjustified costs or policy cancellations and other issues that affect everyone’s bottom line. Household budgets are under enormous stress and every dollar matters,” Commissioner Leonardi said. “Carriers must adhere to state insurance law and when they don’t the Department can and does step in to help, recovering money that rightfully belongs to the policyholder while holding insurance companies accountable.”
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 all of 2012:
Accident, Health - $2.1 million
Auto - $407,000
Fire and Commercial - $409,000
General Liability - $76,000
Homeowners, Farmers - $790,000
Life, Annuities - $241,000
Miscellaneous - $62,000
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
About the Connecticut Insurance Department: The mission of the Connecticut Insurance Department is to protect consumers through regulation of the industry, outreach, education and advocacy. The Department recovers an average of $4 million yearly on behalf of consumers and regulates the industry by ensuring carriers adhere to state insurance laws and regulations and are financially solvent to pay claims. The Department’s annual budget is funded through assessments from the insurance industry. Each year, the Department returns an average of $100 million a year to the state General Fund in license fees, premium taxes, fines and other revenue sources to support various state programs, including childhood immunization.
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