Insurer Ordered to Pay Close to $6 Million
January 14, 2013
National Union Fire Insurance Co. (NUFIC) of Pittsburgh, a member
of AIG's Chartis Group, has agreed to pay the California Department
of Insurance (CDI) a penalty of $5,991,132.37 for fair business
Some of the violations cited include delays and errors in processing
claims, product limitations not explained clearly, failure to use
properly licensed people to sell insurance products and failure
to fulfill and administer policies after sale, as well as others.
As a result of these violations, CDI participated in a multi-state
insurance regulators investigation and enforcement action against
"This is a win for California consumers and sends an important
message to insurers about the cost of not complying with laws and
regulations designed to protect consumers," says insurance commissioner
As part of the settlement, the company faces a required two-year
monitoring period complete with insurance regulator audits, as well
as additional audits and compliance reports. Should the company
fail to adhere to the standards set forth, it faces an additional
$21 million in penalties according to the agreement.
Products covered under the settlement include supplemental accident
and disability policies, accident and disability coverage provided
with travel insurance policies and group and blanket limited benefit
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