Connecticut Insurance Department Recovers $1.4 Million from Complaints

October 28, 2008

Connecticut Insurance Commissioner Thomas R. Sullivan reports that his agency has recovered more than $1.4 million in the third quarter from settling consumer complaints. It is the highest recovery total for the department in six consecutive quarters.

On average, the Sullivan’s Consumer Affairs division recovers $3 million to $4 million dollars per year for consumers.

While come cases are more complex and require more time to resolve than other, this quarter a few of those cases resulted in large recoveries.

This quarter, department staff received 1,362 new complaints and inquiries, about the same as last quarter. Not all inquires or complaints submitted to the insurance department are subject to recovery.

During the third quarter, more than $1 million of all recovered funds came from complaints related to accident and health product lines, and almost $250,000 from life and annuity product lines. The
remaining recovery dollars, roughly $200,000, came from complaints related to property/ casualty product lines.

This quarter, more than 50 percent of complaints were attributed to unfair claim practices. Marketing/sales accounted for 12 percent and premium/rating received 8 percent of the total complaints.

Source: Connecticut Insurance Department
www.ct.gov/cid