Four Insurance Companies Fined for Overcharging Consumers
Aug. 26, 2013—Four insurance companies are being fined a total of $100,000 after they overcharged thousands of Washington consumers, according to a report in The News Tribune in Tacoma, Wash.
Hartford Accident and Indemnity Co., Hartford Casualty Insurance Co., Hartford Insurance Co. of the Midwest, and Trumbull Insurance Co. have all agreed to pay the fines, said Washington Insurance Commissioner Mike Kreidler.
The companies agreed to refund more than $1 million in overcharges to consumers, including 8 percent interest. The overcharges affected nearly 4,800 auto policies between 2009 and 2013, and consumers received their refunds in April.
The overcharges occurred because the companies were using an unapproved rating factor when calculating premiums on policies in which consumers’ previous insurer was a non-standard insurer, Kreidler told the newspaper. Non-standard insurers are insurers who specialize in higher risk customers.