CID: New Releases (01/31/2013) - Insurance Department Recovers $8.7M for Policyholders, Taxpayers in 2012

{Connecticut Insurance Department}
STATE OF CONNECTICUT
Insurance Department
 
 
Thomas B. Leonardi
                               Commissioner                                      
 
 
FOR IMMEDIATE RELEASE
 CONTACT: 
Donna Tommelleo
 
860-297-3958
January 31, 2013

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
 
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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.
 
 
 
For help with all your insurance issues:
  • Ask a question or file a complaint online
  • Call the Consumer Helpline at 800-203-347 or 860-297-3900.
  • Sign up for e-alerts to get the latest news, warnings and rate changes that may affect your premium
  • Visit the Department’s “Be Prepared” page that is updated with seasonal risks
  • Download consumer FAQs on health, homeowner and auto coverage
  • Use the Department’s Speakers Bureau for public events.
  • Visit our Web site and follow the Department on Facebook, Twitter or YouTube
 


Content Last Modified on 1/31/2013 12:14:38 PM