Major players
Travelers Insurance and
Liberty Mutual Insurance have paid over $200,000 in fines and restitution for violating laws in the state of Vermont, according to the Department of Financial Regulation (DFR).
The two insurers paid the DFR fines totalling $154,000 for violating Vermont laws regarding the timing of policy cancellation and renewal notices, for faulty practices when investigating auto liability claims and for wrongly calculating auto accident deductibles.
Liberty Mutual paid a penalty of $20,000 for incorrectly calculating auto accident claims and $38,000 for improperly notifying consumers of the cancellation or non-renewal of homeowners’ policies in 2013 and 2014. The insurer also repaid policyholders more than $18,000.
Travelers Insurance paid a $96,000 penalty for the same violations and for erroneously requiring some policyholders to pay deductibles following accidents between 2011 and 2013. The company also reimbursed $34,584 to Vermont customers.
Both insurers have agreed to modify policies and procedures when investigating auto accidents and to revise record keeping methods to establish more complete documentation.
DFR Commissioner Susan Donegan is pleased with the corrective measures both companies have taken to comply with Vermont insurance regulations.
“It is this department’s number one priority to protect Vermont consumers so I applaud both companies for promptly resolving these issues,” she said, “and this is a perfect example of how insurance laws and regulations guarantee fair treatment for all policyholders.”
