As complaints regarding insurance rate hikes begin to weigh on regulators in New York, the state’s Financial Services Superintendent, Benjamin Lawsky, has announced a new investigation into the matter. Regulators will be investigating the data submitted by insurance companies to justify their premium increases. The goal is to determine the accuracy of the data that these insurers use. These investigations will work alongside the regular rate review process and insurers will not know when they will be investigated. Lawsky notes that any errors made by insurers in their requests for…
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Investigation over home insurance includes Bank of America and Citigroup, among others
The state financial regulator in New York is currently conducting an inquiry regarding the possible overcharging of customers for force-place insurance, into large organizations such as Citigroup Inc. and Bank of America Corp. The focus of the probe is the service known as force-place insurance, which requires the a loan provider to purchase an insurance policy in the circumstance that a homeowner is unable to maintain insurance premiums on the property. According to industry experts, this practice is becoming increasingly common. The probe is being conducted by the office of…
Read MoreImperial Holdings targeted by federal insurance regulators after allegations of fraud
Imperial Holdings has become the target of a federal criminal investigation after insurance regulators caught wind of allegations concerning the life insurance branch of the company – Imperial Finance and Trading. The investigation applies only to the company’s life insurance premium finance business and no other aspect of the company. A multitude of class action lawsuits have been filed against Imperial Holdings since September of last year. Many of these lawsuits are coming from shareholders who claim that the company is committing fraud. Federal regulators seized control of the company’s…
Read MoreDelaware insurance regulators recover $1.8 million in premiums after nine-month investigation
Delaware residents are in for some good news as Insurance Commissioner Karen Stewart declares the recovery of more than $1.8 million in premiums. The money was recovered from a number of insurance companies that have been under investigation for the past nine months. These companies had been the subject of consumer complaints, which were funneled to Stewart through the Department of Insurance. The funds will begin being issued to consumers next year. Fraud and malpractice have been a problematic issue for the state’s insurance industry for some time. In order…
Read MoreOregon’s Regence Group draws the attention of regulators from four states
Oregon insurance regulators have set their sights of the Regence Group, which is part of the Blue Cross Blue Shield insurance group. Mike Kreidler, the state’s Insurance Commissioner, has accused the insurance company of several severe failures that have impacted the lives of thousands of policyholder and even people that are not affiliated with the company in any way. The violations are so serious that Kreidler has issued an order for the company to draft a plan to correct the issues, which is due by the end of this month.…
Read MoreMissouri officials report recovery of $5 million from shady insurers, money to be returned to policyholders
The Insurance Department of Missouri has released their latest quarterly report regarding several issues with the state’s insurance industry. The state has been wracked with an onslaught of consumer complaints for the past three months, after devastating tornadoes tuck their toll in the towns of Joplin and St. Louis. These complaints spurred the Insurance Department to investigate several claims that were filed as well as the operations of some of the insurance companies operating in the state. While the report highlights a number of issues within the insurance industry, it…
Read MoreAlabama Governor erects new panel to investigate the state’s shaken insurance market
A new panel has been set up in Alabama by Governor Robert Bentley comprised of 24 of the state’s insurance and business officials as well as several regulatory figures. The panel is tasked with investigating the state’s insurance market in the wake of deadly tornadoes that ravaged the state, along with its neighbors, two months ago. The original intent of the panel was to focus their investigation to coastal areas, spurred by the forecasts of a tumultuous hurricane season. The effort has been expanded, however, to account for the toll…
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