Complaint investigations net New York $14.2 million for consumers, providers

Advertisement

Investigations into complaints from more than 3,000 consumers and health care providers lead to the recovery of $14.2 million between October 2008 and March, according to New York Insurance Superintendent Eric Dinallo.

Of that amount, 18%, or $2.6 million, went to customers who complained about their property-casualty insurer, excluding automobile insurance, according to Dinallo’s office. Complaints regarding automobile/no-fault insurance resulted in 15% ($2.18 million) of the amount recovered.

Another 14% ($2 million) was related to life insurance complaints and 11% ($1.51 million) was due to health insurance-related complaints, the department said. The remainder of the funds, around $6 million, involved complaints from medical care providers and other categories, including investigations of sales and marketing of insurance products to seniors conducted by the insurance department.

David Paterson

David Paterson

New York Gov. David A. Paterson said state residents should feel “reassured” knowing that regulators are doing what they can to ensure they are “protected from and treated fairly by the insurance industry.”

“These are difficult times, and every dollar counts,” Paterson said in a statement. “I applaud Insurance Superintendent Eric Dinallo and the Insurance Department for their efforts to put more than $14 million back where it belongs – in the pockets of New York consumers.”

Dinallo encouraged people who believe their insurance company made a mistake or feels treated wrongly to call or write his department, which handles about 60,000 complaints and 200,000 calls to its hotline annually, he said.

Among the cases where money was recovered was a 78-year-old man mislead by his insurance agent to switch investments, resulting in a lower return on his $140,000. After the company refused to cancel his contract and issue a refund, the insurance department intervened and the man reclaimed $143,000.

In another case, an 85-year-old grandmother, a victim of a hit-and-run, had yet to receive a liability claim from her insurance company more than a year after her accident.  The insurance department investigated and had the company issue her a check for $245,000 within two months.

Leave a Comment

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2012 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 38 queries. 0.567 seconds.
Entries RSS Comments RSS