Vermont Department of Financial Regulation commissioner Susan L. Donegan announced Feb. 26 that Omaha-based Continental Indemnity Co. has paid the state $335,000 and still owes 16 other businesses an additional $352,000.
An investigation by the department discovered that Continental Indemnity Co., an
Applied Underwriters Inc. subsidiary, had overcharged a number of small businesses for workers' compensation insurance policy premiums between 2007 and 2015. The companies overcharged were entitled to refunds ranging from between $900 to about $56,000.
Continental Indemnity was additionally levied an administrative penalty of $300,000 to the Department of Financial Regulation. An extra $35,000 was assessed to reimburse the department for expenses incurred during the investigation.
Continental Indemnity has recognized the errors and has agreed to perform an internal audit to ensure compliance with the state’s laws.
Donegan remarked that the department appreciates Continental’s cooperation with the matter and is satisfied with the corrective measures the company has taken towards compliance.
"Continental has made commendable efforts to address the issues and correct its erroneous practices," she noted. "I applaud the company's determination to prevent it from happening in the future. Good compliance is an essential consumer protection."
