Connecticut DOI Fines GEICO Companies $177,500 - BodyShop Business

Connecticut DOI Fines GEICO Companies $177,500

Four GEICO subsidiaries were fined a total of $177,500 for improper rating, claim delays, failing to for pay loss of use and employing unlicensed adjusters, among other violations, Connecticut Insurance Commissioner Thomas R. Sullivan announced.

The total fine amount is a result of smaller fines assessed to subsidiary companies. Violations and fines varied by company:

• GEICO Casualty Company, Maryland – $49,000

• GEICO General Insurance Company, Maryland – $31,500

• GEICO Indemnity Company, Maryland – $64,500

• Government Employees Insurance Company, Maryland – $32,500

Although the violations varied by company, most companies did not comply with a state law that requires that optional coverage for safety glass repair or replacement be offered at all deductible levels.

Connecticut law requires insurance companies to formally appoint and license with the state all agents who sell, solicit and negotiate insurance products on their behalf. The market conduct examination revealed instances of unlicensed adjusters within these subsidiaries.

Other violations included instances where companies did not include loss of use payments in claims settlements.

“Connecticut statutes are in place to protect consumers, and violations of these laws are unacceptable,” said Sullivan. “We will continue to scrutinize companies in this industry to ensure they are committed to conducting business within the boundaries of our insurance laws.”

The company complied with the stipulation and final order and will submit a compliance report to the commissioner within 90 days.

More information:

Allstate Fined for Interfering with Repair Process in Rhode Island

Minnesota DOI Fines GEICO $30,000 for Underpayment of Claims

New York DOI Fines Insurance Agents for Taking Kickbacks from Glass Shops

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