HARTFORD — Connecticut Insurance Commissioner Thomas R. Sullivan this week ordered Zurich Insurance Group to pay fines totaling $235,000 for allegedly having unlicensed agents and adjusters, improperly rating commercial lines, and lack of oversight for document retention.
MONTPELIER, VT. — The Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISHCA) this week approved an average decrease of 4.1% for workers’ compensation voluntary loss costs in the Green Mountain State.
Fines collected by the Insurance Department will be remitted to the state’s general fund.
“We will continue to be vigilant in
enforcing Connecticut’s insurance
laws,” said Commissioner Sulli-
van. “And consumers can protect
themselves by verifying an agent is
licensed to sell insurance in Con-
necticut.”
“I am pleased to announce another year of decreased workers’ compensa-
tion rates. This is excellent news, especially for the many Vermont small
businesses that will benefit from this decrease,” said Governor Jim Douglas.
“Four consecutive years of decreased rates would not be possible without
employers’ continued attention to the issue of workplace safety, and the
work of state regulators who successfully maintain a positive business envi-
ronment for insurers.”
The new rates go into effect on April 1 and Douglas estimated that most
employers would see lower premiums as a result.
The total fine amount is a result of smaller fines assessed to subsidiary companies of Zurich. Assurance Company of America, based in New York, will pay $141,500. Zurich American Insurance Company, also based in New York, will pay $61,500. Universal Underwriters Insurance Company, based in Kansas, will pay $32,000 to the Nutmeg State.
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“The health of Vermont’s workers’ compensation market has clearly improved over the past several years, as reflected in these lower rates and the declining number of employers in the assigned risk market,” said Paulette
In Connecticut, insurance companies are required by law to formally appoint and register with the state all agents who sell insurance products on their behalf. All told, Zurich Insurance Group had 42 instances where agents were not appointed and 23 instances where individuals acted as a casualty adjuster without being licensed in accordance with Connecticut law.
MASHANTUCKET, CONN. — As he took the helm as president of the Professional Insurance Agents of Connecticut (PIACT) this week, Howard Olderman sought to remind PIA members and guests at the association’s annual convention that the industry’s focus on relationships is a “rare and distinctive quality that fewer and fewer sectors of business or society possess.” The annual PIACT convention offers a chance for up to 500 agents to network, take continuing education classes and discuss issues of importances to the insurance community over two days at the Foxwoods Resort Casino.
Other violations, according to the Department, included improper rating of commercial lines policies and not considering the amount attributed to one’s inability to use their property, often referred to as ‘loss of use’ in settlements of automobile property damage liability claims.
“We are a relationship business,” Olderman said. “This has not changed from the time of my grandfather who founded our agency in 1929, and with whom I had the privilege to work for many years. He told me of the times, during the Great Depression, when people couldn’t pay their premiums with money and instead brought livestock, barter and wine to his offices. And though our currency is less flexible, the fundamental relationship, built on trust and face-to-face contact, is why our clients still buy insurance from us, even today in similarly difficult times.” Olderman encouraged his fellow agents to remember their strength, and not forget the importance of personal attention that separates the independent agency system from other ways to buy insurance. “Our clients deserve ease of doing business,” he said, “but as much as anyone can buy insurance over the
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