October 22, 2024
OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler issued fines totaling $302,500 against insurance companies, agents, brokers and unlicensed entities in July, August and September of 2024 for violations of state insurance laws and regulations.
Among those actions was a $40,000 fine issued to Allstate Fire & Casualty Insurance Company. After an internal referral, Kreidler’s office randomly selected 95 Allstate auto insurance claims from April to September 2022 for review. On four separate claims, Office of the Insurance Commissioner staff found that the company:
- Did not provide an appropriate reply to a lienholder about the status of a claim and made a payment on that claim 123 days after the initial demand.
- Failed to confirm or deny coverage on a car until 195 days after the initial report.
- Failed to make a payment for a subrogation claim until 160 days after the demand.
- Failed to affirm or deny coverage for a personal property claim in a stolen car.
Each finding violated the Washington state insurance code, punishable by a $10,000 fine.
Fines issued in July, August & September
The other fines issued by Kreidler’s office included:
Lifewise Health Plan of Washington ($150,000) and Evolent Health LLC ($75,000).
American Casualty Company of Reading, Penn.; Continental Casualty Company; The Continental Insurance Company; National Fire Insurance Company of Hartford; Transportation Insurance Company; Valley Forge Insurance Company; fined $25,000 (order 24-0182).
- The companies — all part of the CNA Insurance Group — self-reported two programming errors. One error in the companies’ underwriting rating system affected the business income loss cost for terrorism and following fire premium between 2013 and 2022, and another error affected the internal loss scale factor. The latter error resulted in $133,233.48 in overcharged premiums between 2020 and 2023, which was returned to policyholders with interest.
Delta Dental of Washington, Seattle, Wash.; fined $4,000 (order 24-0197).
- In two instances, Delta Dental failed to timely file large group negotiated rates.
Economy Premier Assurance Company, Lisle, Ill.; fined $2,500 (order 24-0216).
- The company failed to apply the correct rating factors on 433 homeowner policies. The company waived the undercharged premiums and refunded $2,675 in overcharged premiums.
Liberty Mutual Fire Insurance Company, Wausau, Wis.; fined $5,000 (order 24-0183).
- Liberty Mutual failed to apply the applicable loss prevention earthquake factor on 47 policies in 2021 and 2022. The company waived $30,867 in undercharged premiums and refunded $51,464 in overcharges.
Standard Insurance Company, Portland, Ore.; fined $5,000 (order 24-0199).
- The company failed to timely file large group negotiated rates.
Geico Advantage Insurance Company, Omaha, Neb.; fined $5,000 (order 24-0193).
- The company failed to provide the required notice of cancellation for 18 policies.
United of Omaha Life Insurance Company, Omaha, Neb.; fined $4,000 (order 24-0195).
- The company failed to timely file large group negotiated rates.
Aflac Benefit Solutions, Tampa, Fla.; fined $3,000 (order 24-0171).
- Aflac failed to report material changes within 30 days and submitted incorrect information to the OIC.
Redpoint Resolutions LLC, Austin, Texas; fined $50,000 (order 24-0192).
- Redpoint sold travel insurance policies and acted as an insurer without being authorized to do so in Washington state. At the time of OIC’s investigation, the company reported it collected $343,198 in premiums and paid out $92,864 in claims.
Equitable Financial Life Insurance Company of America, Phoenix, Ariz.; fined $5,000 (order 24-0196).
- The company failed to timely file large group negotiated rates.
Premera Blue Cross, Mountlake Terrace, Wash.; fined $1,500 (order 24-0176).
- The company failed to timely file large group negotiated rates.
UnitedHealthcare Insurance Company, Hartford, Conn.; fined $5,000 (order 24-0172).
- The company failed to timely file large group negotiated rates in 41 instances.
Sky Valley Insurance LLC, Snohomish, Wash.; fined $10,000 (order 24-0130).
- The company acted as an insurance agency in Washington state from 2012 to 2023 without being licensed to do so.
Alisha Lenius, Tacoma, Wash.; fined $1,000 (order 24-0160).
- Lenius issued an auto policy without first asking the consumer pertinent discovery questions.
VSP Vision Care Inc., Richmond, Va.; fined $5,000 (order 24-0177).
- The company failed to timely file large group negotiated rates.
Kaiser Foundation Health Plan of the Northwest, Portland, Ore.; fined $5,000 (order 24-0173).
- The company failed to timely file large group negotiated rates in 23 instances.
CoverWallet, Inc.; Lincolnshire, Ill.; fined $5,000 (order 24-0129).
- CoverWallet procured insurance from an unauthorized insurer without being licensed as a surplus lines broker.
Union Insurance Company, Urbandale, Iowa; fined $1,000 (order 24-0170).
- The company failed to apply the correct rating factors on three commercial package policies.
Amica Mutual Insurance Company, Lincoln, R.I.; fined $20,000 (order 24-0165).
- Amica incorrectly applied the building code effectiveness grading credit for homeowners earthquake coverage on four policies.
HDI Global Insurance Company, Chicago, Ill.; fined $3,000 (order 24-0138).
- The company issued policies with incorrect rating factors.
Metromile Insurance Company, Wilmington, Del.; fined $20,000 (order 24-0163).
- Metromile allowed 12 producer appointments to lapse for 36 days.
Blake Charles Lane, Doylestown, Penn.; fined $250 (order 24-0135).
Paul J. Thompson, Seattle, Wash.; fined $1,500 (order 24-0120).
- Thompson posted misleading advertisements for life insurance policies without using the words “life insurance” and including inaccurate discounts.
Laurie Gunsolley, Chehalis, Wash.; fined $750 (order 24-0107).
- Gunsolley offered promotional games in violation of insurance laws and regulations.
About the office
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers. Since 2001, Kreidler has assessed more than $41 million in fines, which are directed to the state’s general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.
For an insurance question or complaint, you may contact Kreidler’s consumer advocates online or by phone at 800-562-6900.