Washington state’s insurance commissioner, Mike Kreidler, issued a $950,000 fine against ACE American Insurance Co. and Indemnity Insurance Co. for an overcharging scandal centered around Washington State.
According to Kreidler’s office the fines were brought against these two companies for their roles in overcharging approximately 18,000 Washington consumers for close to five years. Naturally, the companies were also ordered to reimburse affected customers in addition to the $950,000 fine.
Policyholders can expect reimbursements ranging from pennies to over $2,500, depending on how much they were overcharged. All told, Kreigler ordered the companies to pay roughly $4.7 million (including interested) to policyholders by April 15, 2020.
Kriedler released a statement about the situation. “We found tens of thousands of law violations among the two companies,” said Kriedler. “The most egregious violations were overcharging consumers through rate increases and not disclosing the increases to their customers.”
A fine and reimbursement is an appropriate wrist slap for these poor business practices. However, by no means is overcharging an issue that is going away anytime soon. The best way the average consumer can protect themselves from being overcharged for an insurance policy is to do their research! Be sure to price shop and take the time to find an insurance policy that is right for you.
If you want to get started now and find out more about your current policies, or to learn about opening a new policy, we encourage you to reach out to the staff at TGS Insurance. They are experts in their fields and are always willing to work with you to find the right policy for your lifestyle. Visit www.tgsinsurance.com to learn more.