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Insurance Companies Repay nearly $4 Million to Connecticut Insurance Department

Insurance Companies Repay nearly $4 Million to Connecticut Insurance Department

Saturday’s Post 11/19/11 - As the end of  2011 approaches, the state of Connecticut has been on the receiving end of extreme weather conditions. It begun with the States worst ever snowstorm in October, coupled with floods that caused serious damage to property. As a result, residents turned to Insurance Companies for compensation. According to the Connecticut Insurance Department, many of the residents were seeking compensation for the very first time.  However, insurance companies seemed to dither when it came to settlement of claims.

Data from the Consumer Affairs Department shows that consumers reported nearly 1900 complaints regarding Insurance companies, from early July to the end of October. So far, the department has managed to close 1,393 cases, helping residents to recover $3.8 million from insurers. The bulk of claims recovered consisted of Health and Homeowners policies. Additionally, the Market Conduct Unit of the Department managed to obtain $270,000 in penalties from insurance companies that violated state laws. The funds went to the States General Fund account.  A further 5,400 inquiries are still in the pipeline pending investigations.

Data from the department gives the following breakdown of funds from the recovered funds:

  • Health and Accident policies–$610,929
  • Auto insurance policies–$156,503
  • Fire, Allied lines and Commercial multi peril–$27,514
  • General liability policies–$3,245
  • Homeowners and farmers insurance policies–$458,732
  • Life and annuities–$116,080
  • Other polices–$5,768 

In the wake of damages from extreme weather conditions, the State Insurance Commissioner urged residents who experienced problems from their insurers to report to his office. The Connecticut Insurance Department, just like other state insurance regulators, has the onus to make sure insurers do not violate state laws; and adhere to best practices. Any violations are subject to penalties in accordance to set laws. In 2010, the department recovered $3.4 million from insurance companies of which $967,000 originated from complaints by residents.   

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602