Litigation

The Connecticut Insurance Department announced April 9, 2010 that it has fined four GEICO subsidiaries a total of $177,500 for improper rating, claim delays and the use of unlicensed adjusters among other violations, according ta report in Insurance Journal.

The report attributes the following quote to Connecticut Insurance Commissioner Thomas 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,"  (Underline added for emphasis)

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.

An appropriate salute goes out to factoring "beeyatch" Rhonda Bentzen, of Bentzen Funding Solutions, who I reported in "Steamed Dumbplings from Nashville", bizarrely alleged that she "once asked me if it was fine for casualty insurers to purposely drag their heels on cases, especially policy limits cases, where there is no question of liability".

and to which I responded "There are laws in various states designed to promote and enforce fair claims settlement practices. I think insurers should adhere to them, but I'm not sure what that has to do with the subject matter of this blog or hers".

The above anecdote supports my point about laws concerning fair claims settlement laws and  provides a recent example that State Insurance Departments do actually enforce them.