St. Louis, MO (WiredPRNews.com) As we get deeper into 2011, a number of reports are coming out documenting the actions taken in 2010 by state auto insurance regulators on the behalf of consumers. In addition to reviewing rate filings by all types of insurance providers to check their actuarial soundness, another critical function performed by state regulators that’s been touted in these reports is the handling of consumers’ complaints against coverage providers. State departments are announcing that they have recovered tens of millions of dollars collectively over the past year for policyholders who have had disputes with their providers.
As part of their overall role, regulators serve as objective mediators that can assist in resolving issues between providers and policyholders. The complaints that often lead to the recoveries usually are about an insurer’s denial of claims or about the way that an insurer handled the processing of a claim.
The story of one consumer’s disagreement with her car insurance company in Missouri serves as a typical example. According to an announcement from Missouri state regulators, she had gotten into an accident and filed a claim with her provider only to be told that she hadn’t been covered at the time of the accident. The reason her coverage had been dropped was that the insurer did not receive her premium payment by the due date. She disputed this claim, and contacted state regulators for help. After working with the carrier to resolve the issue, the department found that the funds had in fact been received by the insurer, but had been misapplied. The case ended with the insurer covering the $9,000 claim.
Add thousands of these types of incidents up, and you get millions of dollars in recovered funds for policyholders across the nation.
Missouri and North Carolina regulators recently announced that, across all lines of coverage, they each recovered more than $10 million last year for residents through mitigation. Delaware’s and Connecticut’s commissioners reported that they recovered more than a combined $5.5 million in 2010, and the California Consumer Services Division recovered a whopping $89.1 million last year.
To learn about the role of regulators and other insurance issues, readers can go to http://www.onlineautoinsurance.com/missouri/ where visitors will find informative articles and a quote-comparison generator that can be used to help locate the lowest prices on the market for a policy.