Pa. Insurance Regulators Recover $3.4 Million for Consumers

Regulators in Pennsylvania announced this week that they recovered $3.4 million in restitution for consumers in the first quarter of 2012.

The recovered funds come from 3,211 written consumer complaints and inquiries submitted during that time and 27 enforcement actions. State regulators also collected $71,000 in fines and penalties, according to a department release.

Regulators took action against both large insurers and individually licensed people, reporting that they suspended or revoked 14 licenses and put 11 licenses under probationary supervision.

“Action is taken after an investigation reveals violations of Pennsylvania laws or regulations, or after the completion of a market conduct examination,” the Pennsylvania Insurance Department stated in its release.

State regulators are usually the last resort in resolving issues between insurers and drivers. Customers holding policies with cheap car insurance companies are pleased with lower rates and premiums. But they can find problems with compensation when they file claims.

Claim denials and delays made up more than half of all complaints filed with regulators from 2009-11, according to data collected by the National Association of Insurance Commissioners (NAIC).

Other regulatory reports publicized this year showed that California, Michigan, Georgia, Montana, Ohio and North Carolina recovered a total of almost $150 million in 2011 for consumers by resolving similar disputes.

Earlier this month, regulators in New Jersey reported that they recouped $32 million for consumers in the state last year, representing a 50 percent jump in funds recovered from insurers and banks.

Policyholders looking for the best quality insurer can refer to state regulators’ websites, where reports are regularly published on the complaints filed on each insurer.

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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