Connecticut Insurance Commissioner Thomas R. Sullivan has fined four GEICO subsidiaries a total of $177,500 for improper rating, claim delays, loss of use and unlicensed adjusters among other violations to state law.
The total fine amount is a result of smaller fines assessed to subsidiary companies. Violations and fines varied by company and are as follows:
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
"Connecticut statutes are in place to protect consumers, and violations of these laws are unacceptable.” says 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."
While the violations varied by company, most companies did not comply with the 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 in their settlement, the amount attributed to one’s inability to use their property, which is commonly referred to as "loss of use."
The company complied with the stipulation and final order, and will submit a compliance report to the commissioner within 90 days. Click here to view the market conduct reports and stipulations.
