On March 16, 2016

Insurance co’s penalized for faulty policies, procedures

Susan L. Donegan, commissioner of the Department of Financial Regulation (DFR), announced March 10 that Travelers Insurance Co. and Liberty Mutual Insurance Co. have paid Vermont $154,000 in fines and repaid consumers another $54,500.

The two insurance companies this week paid fines totaling $154,000 for violating Vermont laws regarding the timing of policy cancellation and renewal notices, faulty practices when investigating auto liability claims and, in one case, wrongly calculating auto accident deductibles.

Liberty Mutual Insurance Co. paid an administrative penalty of $38,000 for inappropriately notifying consumers of the cancellation or non-renewal of homeowners’ policies in 2013-14. An administrative penalty of $20,000 was assessed for incorrectly calculating auto accident claims. The company voluntarily repaid policyholders more than $18,000 in addition to the administrative penalty.

Travelers Insurance Co. paid an administrative penalty in the amount of $96,000 for the same violations and for incorrectly requiring some policyholders to pay deductibles following auto accidents between 2011 and 2013. The company has paid restitution to those Vermonters in the amount of $34,584.

Both Liberty Mutual and Travelers have agreed to modify policies and procedures when investigating auto accidents. In addition to further training, insurance adjusters will conduct more in-depth interviews, obtain police reports, compile photographic evidence and consult with experts. They have also agreed to modify recordkeeping to establish more complete documentation.

Donegan said she appreciated the cooperation the department received from Travelers and Liberty Mutual during the investigations and is pleased with the corrective measures both companies have taken to comply with Vermont insurance regulations.

“It is this department’s number one priority to protect Vermont consumers so I applaud both companies for promptly resolving these issues,” she said, “and this is a perfect example of how insurance laws and regulations guarantee fair treatment for all policyholders.”

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

New donut shop opening in Ludlow

June 5, 2024
The grand opening of New England Cider Donuts at 29 Main St. in Ludlow was recently celebrated with a ribbon cutting. The new shop will offer local coffee, breakfast sandwiches, assorted baked goods, in addition to delicious cider and specialty donuts. In the summer months it’ll also offer extravagant ice cream sundaes. 

United Way of Rutland County names new exc. director

May 22, 2024
The United Way of Rutland County (UWRC) announced the appointment of Tina Van Guilder as its new executive director, May 17.  Van Guilder officially assumed her role as executive director May 6. With over seven years of direct non-profit leadership experience in the Rutland County area, coupled with recent roles focusing on grant coordination, budget…

Three reasons I’m voting ‘Yes’ for the new school build

February 28, 2024
Dear Editor, As a full-time Killington resident, here are three reasons why I’m voting for the new school build. First, the time is now. As others have indicated in previous letters, seven years of school boards have been working on this project. Over the course of that time, volunteer school board members, community members, and…

Suspect arrested in shooting of 3 Palestinian American students

November 29, 2023
  By Alan J. Keays/VTDigger Burlington Police say they have arrested a suspect in the shooting Saturday night that wounded three young Palestinian American men. The three men, all 20 years old, were in Burlington visiting relatives of one of the men over the Thanksgiving holiday when the shooting took place around 6:30 p.m. Saturday…