Dept. of Insurance announces $10
million in market conduct fines
Illinois ramping up participation in
multistate efforts to protect consumers
Send a link to a friend
[February 11, 2013]
CHICAGO -- Illinois Department
of Insurance Director Andrew Boron announced that more than $10.3
million in market conduct fines was collected by the department in
calendar year 2012. This amount represents a significant increase in
fines collected compared with the past several years, as a result of
DOI's more active participation and enforcement efforts in
multistate examinations in order to protect Illinois consumers. The
department will continue to ramp up market conduct examinations and
enforcement efforts in 2013 by investigating business and regulatory
practices in life and health, property and casualty, workers'
compensation, and automotive insurance, among other areas.
|
"We hold companies accountable to comply with Illinois requirements in providing
protections for consumers," said Boron. "DOI is taking a more proactive effort
to use its enforcement authority through the use of market conduct examinations,
which is one of the tools the department has to foster a level playing field for
the people in Illinois and to ensure that insurance companies are playing by the
rules." DOI has participated in several multistate
examinations, including the previously announced settlements in 2012 with
American International Group Inc., MetLife Inc. and Prudential Insurance Company
of America. The department's increased participation and enforcement efforts
have resulted in a rise of the amount of market conduct fines collected. These
fines are deposited into the Insurance Administration Producer Fund and used
toward the DOI appropriation.
-
2012 -- $10,314,976
-
2011 -- $322,000
-
2010 -- $217,000
-
2009 -- $363,630
A multistate investigation of AIG and several of its workers' compensation
affiliates for underreporting premiums resulted in the largest portion of the
fines collected in 2012. As part of the settlement, Illinois collected $3.7
million from AIG. The investigations of MetLife and Prudential looked into the
companies' practices and procedures for identifying and paying proceeds to
beneficiaries of life insurance policies and annuities. Under these agreements,
the companies are implementing business reforms to promote a timely and
efficient search for the beneficiaries of its in-force life insurance policies
and annuities through regular matches of its insureds and annuitants against the
Social Security Administration's Death Master File.
[to top of second column] |
The mission of the Illinois Department of Insurance is to protect
consumers by providing assistance and information, by efficiently
regulating the insurance industry's market behavior and financial
solvency, and by fostering a competitive insurance marketplace. The
department assists consumers with all insurance complaints,
including health, auto, life and homeowner. Consumers who have any
questions or concerns about their insurance may contact the
department's Consumer Division at
http://insurance.illinois.gov/ or call 866-445-5364.
[Text from
Illinois Department of
Insurance
file received from
the
Illinois Office of
Communication and Information]
|