Washington Insurance Commissioner Issued Fines Totaling $302K
Washington Insurance Commissioner Mike Kreidler issued fines totaling $302,500 against insurance companies, agents, brokers and unlicensed entities in July, August and September for violations of state insurance laws and regulations.
Among those actions was a $40,000 fine issued to Allstate Fire & Casualty Insurance Co. After an internal referral, Kreidler’s office randomly selected 95 Allstate auto insurance claims from April to September 2022 for review.
On four separate claims, staff reportedly found the company: Did not provide an appropriate reply to a lienholder about the status of a claim and made a payment on that claim 123 days after the initial demand; failed to confirm or deny coverage on a car until 195 days after the initial report; failed to make a payment for a subrogation claim until 160 days after the demand; failed to affirm or deny coverage for a personal property claim in a stolen car.
Each finding violated the Washington state insurance code, which is punishable by a $10,000 fine.
The other fines are reported offenses include:
Lifewise Health Plan of Washington ($150,000) and Evolent Health LLC ($75,000).
American Casualty Company; Continental Casualty Company; The Continental Insurance Company; National Fire Insurance Company; Transportation Insurance Company; Valley Forge Insurance Company; fined $25,000.
The companies are part of the CNA Insurance Group. They self-reported two programming errors. One error in the companies’ underwriting rating system affected the business income loss cost for terrorism and following fire premium between 2013 and 2022, and another error affected the internal loss scale factor. The latter error resulted in $133,233.48 in overcharged premiums between 2020 and 2023, which was returned to policyholders with interest.
Delta Dental of Washington, Seattle, Wash.; fined $4,000
In two instances, Delta Dental failed to timely file large group negotiated rates.
Economy Premier Assurance Company, Lisle, Ill.; fined $2,500
The company failed to apply the correct rating factors on 433 homeowner policies. The company waived the undercharged premiums and refunded $2,675 in overcharged premiums.
Liberty Mutual Fire Insurance Company; fined $5,000
Liberty Mutual failed to apply the applicable loss prevention earthquake factor on 47 policies in 2021 and 2022. The company waived $30,867 in undercharged premiums and refunded $51,464 in overcharges.
Standard Insurance Company, Portland, Ore.; fined $5,000
The company failed to timely file large group negotiated rates.
Geico Advantage Insurance Company, Omaha, Neb.; fined $5,000
The company failed to provide the required notice of cancellation for 18 policies.
United of Omaha Life Insurance Company, Omaha, Neb.; fined $4,000
The company failed to timely file large group negotiated rates.
Aflac Benefit Solutions, Tampa, Fla.; fined $3,000
Aflac failed to report material changes within 30 days and submitted incorrect information to the OIC.
Redpoint Resolutions LLC, Austin, Texas; fined $50,000
Redpoint sold travel insurance policies and acted as an insurer without being authorized to do so in Washington state. At the time of OIC’s investigation, the company reported it collected $343,198 in premiums and paid out $92,864 in claims.
Equitable Financial Life Insurance Company of America, Phoenix, Ariz.; fined $5,000
The company failed to timely file large group negotiated rates.
Premera Blue Cross, Mountlake Terrace, Wash.; fined $1,500
The company failed to timely file large group negotiated rates.
UnitedHealthcare Insurance Company, Hartford, Conn.; fined $5,000
The company failed to timely file large group negotiated rates in 41 instances.
Sky Valley Insurance LLC, Snohomish, Wash.; fined $10,000
The company acted as an insurance agency in Washington state from 2012 to 2023 without being licensed to do so.
Alisha Lenius, Tacoma, Wash.; fined $1,000
Lenius issued an auto policy without first asking the consumer pertinent discovery questions.
VSP Vision Care Inc., Richmond, Va.; fined $5,000
The company failed to timely file large group negotiated rates.
Kaiser Foundation Health Plan of the Northwest, Portland, Ore.; fined $5,000
The company failed to timely file large group negotiated rates in 23 instances.
CoverWallet, Inc.; Lincolnshire, Ill.; fined $5,000
CoverWallet procured insurance from an unauthorized insurer without being licensed as a surplus lines broker.
Union Insurance Company, Urbandale, Iowa; fined $1,000
The company failed to apply the correct rating factors on three commercial package policies.
Amica Mutual Insurance Company, Lincoln, R.I.; fined $20,000
Amica incorrectly applied the building code effectiveness grading credit for homeowners earthquake coverage on four policies.
HDI Global Insurance Company, Chicago, Ill.; fined $3,000
The company issued policies with incorrect rating factors.
Metromile Insurance Company, Wilmington, Del.; fined $20,000
Metromile allowed 12 producer appointments to lapse for 36 days.
Blake Charles Lane, Doylestown, Penn.; fined $250
Paul J. Thompson, Seattle, Wash.; fined $1,500
Thompson posted misleading advertisements for life insurance policies without using the words “life insurance” and including inaccurate discounts.
Laurie Gunsolley, Chehalis, Wash.; fined $750
Gunsolley offered promotional games in violation of insurance laws and regulations.
Kreidler’s office has assessed more than $41 million in fines, which are directed to the state’s general fund to pay for state services.