Contact: Donna Tommelleo, 860-297-3958

 

Insurance Department Recovers
Nearly $8 Million for Policyholders, Taxpayers in 2018

 

The Connecticut Insurance Department recovered nearly $8 million for policyholders and taxpayers in 2018, helping individuals, families and employers with their claims and complaints

“The Department’s Consumer Affairs staff helps thousands of consumers each year with their questions and concerns about their insurance and makes certain that companies are compliant with all state insurance laws and regulations,” Acting Commissioner Paul Lombardo says.

The Department’s Consumer Affairs Unit (CAU) fielded 6,350 complaints and inquiries in 2018 and helped policyholders recoup more than $5.5 million from January 1 to December 31, 2018. Also in 2018, the Department’s Market Conduct Division levied approximately $2.3 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 2017:

• Accident, Health - $2.3 million
• Auto - $1.5 million
• General Liability - $30,000
• Homeowners and Commercial Property - $1.13 million
• Life, Annuities - $523,000
• Miscellaneous - $37,000

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.

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 portal.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.

 

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