CT Insurance Dept. Recoups $8M for Policyholders, Taxpayers

The Connecticut Insurance Department said it recovered nearly $8 million for policyholders and taxpayers in 2018, according to Acting Commissioner Paul Lombardo.

Source: Hartford Business.com | Published on January 22, 2019

Lombardo, serving in place of former Commissioner Katharine L. Wade, on Friday said his agency's Consumer Affairs Unit handled 6,350 complaints and inquiries in 2018, resulting in over $5.5 million being returned to insured consumers and taxpayers.

In addition, the agency's Market Conduct Division said it collected $2.3 million in fines and penalties from insurance carrier's and returned the money to Connecticut's general fund. The fines were levied due in large part to violations and settlements including untimely claim payments and improper licensing, the insurance watchdog said.

Most of the money recouped for policyholders come from complaints over health accident, homeowners and life and annuities policies, the agency said.

The following funds were recovered in 2018:

  • Health accident: $2.3 million
  • Auto: $1.5 million
  • Homeowners and commercial property: $1.1 million
  • Life annuities: $523,000
  • Miscellaneous: $37,000
  • General liability: $30,000

In 2017, the state Insurance Department recovered $6.8 million for policyholders and taxpayers and recouped $7.5 million in 2016.

The agency said it returns, on average, $100 million a year to the state's General Fund through license fees, fines, premium taxes and other revenues to underwrite several state programs.