Insurer Ordered to Pay Close to $6 Million
in Penalties 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 practices violations. 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 NUFIC. "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 Dave Jones. 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 plans. Subscribe to AGRR™ Magazine. |
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