Pa. Ins. Dept. Recovers $66.8 Million - 1st Qtr. Restitution
Posted Scott B. Cooper on Apr 28, 2015 in News
Posted on Apr 28, 2015
The Pennsylvania Insurance Department has continued its work on behalf of Pennsylvania consumers. The collection of restitution for people is soaring.
Last week in a press release, acting Pennsylvania Insurance Commissioner Teresa Miller announced that nearly 5,000 Pennsylvania consumers received $66.8 million in restitution payments or credits through the restoration of stolen funds, the payment of denied or underpaid claims, and the refunding of overcharged premiums during the first quarter of 2015.
“My Administration is committed to protecting consumers across the commonwealth,” said Governor Tom Wolf. “These types of predatory practices will not be tolerated on my watch. Families should always get the coverage they deserve at the prices they have agreed to pay.”
“Pennsylvanians spend hard earned money to protect their families by purchasing many types of coverage, including life, home, auto, and health insurance. The state has a competitive insurance market, which is good for consumers, because competition increases options and holds down prices,” added Acting Secretary Miller. “But, if a customer is victimized by an unscrupulous insurance producer or an unfair business practice, the PA Insurance Department will do everything possible to make that consumer whole.”
Miller said 4,830 Pennsylvania consumers received restitution payments or credits in the first three months of 2015, primarily in four main areas.
- Restoration of stolen funds. The Insurance Department has investigated cases where an insurance agent collects a personal check or cash as payment for a policy or annuity, but never sends that money to the insurance company, often stealing the customer’s money. In these instances, the department requires the agent to repay the customer, or if the agent cannot make this repayment, the insurance company for which the agent sold the policy must do so.
- Processing and payment of previously denied or underpaid claims. When an Insurance Department investigation finds a customer’s claim was inappropriately denied or only partially paid, the department requires the company to pay the claim as it should under the policy.
- Refunding of overcharged premiums. Private auto and homeowners insurers must, under Pennsylvania law, receive prior approval from the Insurance Department for the rates they charge. When an investigation finds an insurance company is using rates not approved, any premium payments above the rate that would have been approved are returned to the customers either in refunds or credits to the policy premiums.
- Making payments under a multi-state settlement with life insurance companies. Pennsylvania is a leader in a multi-state examination of life insurance companies, resulting in companies entering into settlement agreements requiring them to reform the way they do business for the benefit of policyholders and beneficiaries across the country. Insurance regulators nationwide focused on the life insurance industry’s selective use of the Social Security Administration’s Death Master File (DMF), and found that while some companies properly used this file, others used it to terminate the payment of annuity benefits, while at the same time failing to trigger the payment of life insurance policy benefits. Moving forward, life insurance companies that have entered these settlement agreements will use the DMF to identify potentially unpaid insurance benefits and search for beneficiaries to whom benefits might be due.
Miller urged anyone with concerns about insurance issues to visit www.insurance.pa.gov, and click on “Services for Consumers”, or call 1-877-881-6388.
MEDIA CONTACT: Ron Ruman, Insurance Department, 717-787-3289
If you or a loved one are seriously injured in a Pennsylvania car accident because another driver pulled out in front, was inattentive, texting or sleeping while driving, contact our Pa. car accident lawyers at Schmidt Kramer. We can answer any questions or concerns you have about a Pennsylvania car accident in Harrisburg, Mount Joy, Lancaster, Elizabethtown, Hershey, Lebanon, Harrisburg, and all of Central Pennsylvania.
The toll-free number is 888-476-0807 or dial 8 at 717-888-8888 and the case evaluation is free. Alternatively, you may wish to download a free copy of our book Who Pays the Bills When You Are Injured in an Automobile Accident? for additional information.