Washington State Insurance Commissioner Mike Kreidler has ordered six subsidiaries of Chubb & Son, to pay $ 534,000 fine for repeated violations of state insurance law.
Federal Insurance Co., Pacific Indemnity Co., Great Northern Insurance Co., Executive Risk Indemnity, Inc., to check the insurance company and the Pacific Northwest damage Co. agreed to pay a fine. In addition, $ 534,000 fine was suspended until the companies agreed to comply with the observance of a plan which, among other circumstances, require semi-annual self-inspections.
In November, Kreidler has called for a $ 534,000 fine and a suspension of nine months of the six companies, insurance certificates, which would have prevented her from writing new coverage in this period. Under the consent order, there will be no suspension, so long as the company commits no further violations for three years.
"The companies have assured me that respect is a priority," said Kreidler, "and I hope that this approach will solve these problems."
A key issue was the repeated failure of companies to document the reasons for the practice of higher rates or lower in certain policies. Reviews and audits dating from 1998 found the same problems are repeated. Since 2000, officials from Washington State Insurance repeatedly fined subsidiaries and Chubb, and urged them to solve problems.
However, repeated examinations and a series of self-research firms Kreidler ordered since 2007, found hundreds of violations of state laws, including many more recent. In some cases, more than half of the sample was extracted files violations.
The fines imposed by the Office of the Commissioner of Insurance of the State agency will not. The money is deposited into the state general fund to pay for other utilities.
(And here's the link to request disciplinary orders of the department of insurance in Washington State.)
Federal Insurance Co., Pacific Indemnity Co., Great Northern Insurance Co., Executive Risk Indemnity, Inc., to check the insurance company and the Pacific Northwest damage Co. agreed to pay a fine. In addition, $ 534,000 fine was suspended until the companies agreed to comply with the observance of a plan which, among other circumstances, require semi-annual self-inspections.
In November, Kreidler has called for a $ 534,000 fine and a suspension of nine months of the six companies, insurance certificates, which would have prevented her from writing new coverage in this period. Under the consent order, there will be no suspension, so long as the company commits no further violations for three years.
"The companies have assured me that respect is a priority," said Kreidler, "and I hope that this approach will solve these problems."
A key issue was the repeated failure of companies to document the reasons for the practice of higher rates or lower in certain policies. Reviews and audits dating from 1998 found the same problems are repeated. Since 2000, officials from Washington State Insurance repeatedly fined subsidiaries and Chubb, and urged them to solve problems.
However, repeated examinations and a series of self-research firms Kreidler ordered since 2007, found hundreds of violations of state laws, including many more recent. In some cases, more than half of the sample was extracted files violations.
The fines imposed by the Office of the Commissioner of Insurance of the State agency will not. The money is deposited into the state general fund to pay for other utilities.
(And here's the link to request disciplinary orders of the department of insurance in Washington State.)
