Connecticut Recovered $6M for Consumers in 2015

Connecticut Insurance Commissioner Katharine L. Wade announced that the Connecticut Insurance Department recovered approximately $6 million for policyholders and taxpayers in 2015, helping individuals and families with their claims and complaints.

The Department’s Consumer Affairs Unit (CAU) fielded more than 6,100 complaints and inquiries and helped policyholders recoup more than $4 million last year.

Also in 2015, the Department’s Market Conduct division levied approximately $1.7 million in fines against carriers and returned that money to the state general fund. The fines resulted from various violations and settlements ranging from untimely claim payments to improper licensing.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The breakdown of the funds is as follows: $2.7 million from accident, health; $430,000 from auto; $17,200 from general liability; $530,000 from homeowners; $294,000 from life, annuities; and $68,000 from miscellaneous items.

“Behind these statistics are the individuals and families the Department was able to help through our intervention,” Wade said.

“In many cases we were able to make a real difference in their lives and I encourage anyone with questions or concerns about their insurance to contact the Department. We are here to help consumers.”

The Department said it calculates its consumer recoveries based on what the policyholder received as a result of the Department’s intervention.

The Department recovers an average of $4 million yearly on behalf of consumers and regulates the industry by ensuring carriers adhere to state insurance laws and regulations and are financially solvent to pay claims.

The Department’s annual budget is funded through assessments from the insurance industry. Each year, the Department returns an average of $100 million a year to the state general fund in license fees, premium taxes, fines and other revenue sources to support various state programs, including childhood immunization.