OAI: Fines Levied on Del. Auto Insurance Cos. Highlight Regulators' Role

Car insurance regulators in Delaware recently fined Allstate and Encompass a combined $50,000 for charging policyholders too much.

Online PR News – 05-October-2011 – – Delaware Insurance Commissioner Karen Weldin Stewart’s announcement that she has fined two auto insurers $25,000 each for violating state law highlights the important work state regulators carry out on behalf of consumers nationwide, according to Online Auto Insurance (OAI).

Trying to decipher policy terms and deal with large coverage providers can often leave policyholders with more car insurance questions than answers. But regulatory agencies nationwide exist to help consumers make sense of their coverage and make sure they get a fair deal from their coverage providers.

Stewart fined Allstate and Encompass a combined $50,000, with those penalties scheduled to increase by 300 percent if the companies repeat their violations any time within the next three years. Allstate was fined for failing to give eligible Delaware auto insurance policyholders defensive driver discounts, and Encompass was penalized for imposing illegal surcharges on policyholders who were not at fault in accidents. Both companies waived their right to administrative hearings and agreed to pay the fines.

State regulators do more than just impose penalties. They also protect consumers by helping to negotiate claim disputes between policyholders and their insurers, recovering millions of dollars each year in claims that would probably not have been settled otherwise.

The commissioner’s office in Delaware recovered more than $2 million for consumers in 2010 as a result of resolving disputes between policyholders and coverage providers.

Regulators in Delaware and other states are also charged with overseeing companies to ensure they are solvent and are legally authorized to take action against companies, including suspending their business activities and even liquidating their assets.

Source: http://delcode.delaware.gov/title18/c059/sc02/index.shtml

To learn more about this and other insurance issues, readers can go to www.onlineautoinsurance.com/delaware/ target="_blank" class="highlight_link">http://www.onlineautoinsurance.com/delaware/ where they will find informative resource pages and a helpful rate-comparison generator.

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