The Illinois Department of Insurance (DOI) has issued an order against Universal Casualty Company (UCC) for failing to perform prompt investigations and settlements of consumers’ claims. On Aug. 11, 2009, the DOI ordered Elk Grove Village, Ill.-based UCC to pay a $200,000 fine and correct its claims processes immediately.
In January 2008, the DOI ordered UCC to create and maintain improved claims investigation and resolution procedures, but the DOI continued to receive complaints from consumers based on UCC’s failure to properly address or resolve property damage and liability claims. Acting on behalf of Illinois consumers, the Department initiated additional punitive measures and a new investigation of UCC on July 27, 2009.
The DOI’s order entered Aug. 11 imposes a fine of $200,000 on UCC – $100,000 of which is payable in the event that the DOI’s current examination finds that UCC’s corrective measures are unsatisfactory. The order also requires that UCC must revisit and resolve several hundred previous consumer complaints. UCC has informed the DOI of its effort to institute corrective measures, including the engagement of new management.
If the company fails to undertake reforms as required by the order, the DOI will take further disciplinary measures.
UCC was recently banned from writing new policies in Missouri and Indiana.
