Maryland insurance regulators recently ordered Hartford Fire Insurance Co. and Hartford Casualty Insurance Co. to collectively pay a $25,000 fine for violating seven state laws.
Beth Sammis
Maryland Insurance Administration records indicate that the two Hartford, Conn.-based insurers were assessed the fine after state regulators conducted a targeted examination of its practices between April 1, 2007, and March 31, 2008.
Acting Maryland Insurance Commissioner Beth Sammis indicated earlier this year that her office would use targeted examinations to probe matters that arise from complaints, other states or MIA research.
MIA records show that among the violations found were that the company accepted business from individual producers or entities not appointed to the company; failed to maintain/update its producer register as required; placed risks in lower or higher tiers than those designated by the automated rating system; applied incorrect or invalid rating factors resulting in incorrect premiums or discriminatory pricing’ and failed to document files to support placement or rating of the risks.
Other business practice issues the MIA noted, according to its report, included that its underwriting practices for Spectrum policies did not require the underwriter to maintain documentation in files to support schedule modifications; that a specific segment of Spectrum accounts are not subject to a reunderwriting program for possible betterment in tier placement or rate modification; and that Spectrum filing includes tier placement characteristics that differ for applications submitted on paper and electronically.
The MIA noted in its report that some of the infractions could extend to policyholders in other states.
This article first appeared in the November 2010 edition of Insurance & Financial Advisor — Maryland/D.C.
Hartford Fire, Hartford Casualty pay Md. $25,000 for violations via IFAwebnews.com .
No related posts.