Susan L. Donegan, commissioner of the Department of Financial Regulation (DFR), announced Feb. 26 that Continental Indemnity Co., a subsidiary of Applied Underwriters, Inc., has paid Vermont $335,000 and owes 16 Vermont businesses an additional $352,000.
An investigation conducted by the department revealed that between 2007 and 2015, Continental had overcharged a number of small businesses for workers’ compensation insurance policy premiums. Those Vermont companies are entitled to refunds ranging from just over $900 to almost $56,000. An administrative penalty of $300,000 was paid to DFR and an additional $35,000 was assessed to reimburse the department for costs incurred during the investigation.
Continental has acknowledged the errors and has agreed to conduct an internal audit to ensure future compliance with Vermont laws.
Donegan said she appreciated the cooperation the department received from Continental during the investigation and is pleased with the corrective measures the company has taken to adhere to Vermont insurance regulations.
“Continental has made commendable efforts to address the issues and correct its erroneous practices,” Donegan said. “I applaud the company’s determination to prevent it from happening in the future. Good compliance is an essential consumer protection.”
Continental Indemnity Co. is headquartered in Omaha, Neb.