CID: New Releases (08/14/2017) - Commissioner: Insurance Department Recovers $4M For Consumers, Taxpayers in First Half of 2017

{Connecticut Insurance Department}
STATE OF CONNECTICUT
Insurance Department
 
Katharine L. Wade
Commissioner
 
 
FOR IMMEDIATE RELEASE
 CONTACT: 
Donna Tommelleo
 
860-297-3958
August 14th, 2017

 
Commissioner: Insurance Department Recovers $4M
For Consumers, Taxpayers in First Half of 2017

Insurance Commissioner Katharine L. Wade today announced that the Connecticut Insurance Department recovered $4 million for Connecticut consumers and taxpayers in the first half of 2017.

“The Department stands ready to help and advise consumers with any insurance concern and we do exactly that for thousands of our citizens each year,” Commissioner Wade said. “Whether it’s navigating a claims process, finding a lost life insurance policy or gaining a better understanding of your policy coverages, we encourage you to contact the Department.”

The Commissioner highlighted one of the many instances in the last six months in which the Department went to bat for consumers: When an insurance company failed to comply with Connecticut’s new law mandating coverage for hearing aids, the Insurance Department intervened and helped return more $580,000 that was rightfully owed to policyholders.

The Department’s Consumer Affairs Unit (CAU) handled more than 3,800 complaints and inquiries and helped policyholders recoup nearly $2.7 million from January 1 to June 30, 2017. During that same period the Department’s Market Conduct division levied approximately $1.3 million in fines against carriers and returned that money to the state’s General Fund. 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 following is the breakdown of funds recovered in 2016:
  • Accident, Health - $1.9 million
  • Auto - $270,000
  • General Liability - $48,000
  • Homeowners and Commercial Property - $220,000
  • Life, Annuities - $202,000
  • Miscellaneous - $13,000
The Department also has launched a Life Insurance Policy Locator in December 2016 and since then more than 60 consumers have used this free online tool to recover nearly $300,000 owed to them in benefits from old life insurance and annuity policies.

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.

Complaint data also help 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.
 
 
For help with all your insurance issues:
  • Email us at insurance@ct.gov
  • Ask a question or file a complaint online
  • Call the Consumer Helpline at 800-203-3447 or 860-297-3900.
  • Sign up for e-alerts to get the latest news, warnings and rate changes that may affect your premium
  • Use the Life Insurance Policy Locator to find a lost policy
  • 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 8/14/2017 12:57:43 PM