Bankers Independent Insurance Co. paid a $26,000 fine and agreed to return money to 98 of its policyholders after Virginia regulators found violations of its laws during a routine market conduct examination.

The Conshohocken, Pa.-based insurer paid $5,176.75 in restitution to 98 consumers and agreed to take corrective measures as part of the settlement, according to records from the Virginia State Corporation Commission Bureau of Insurance.

During the market conduct examination, the Bureau of Insurance made several findings, including that the company failed to use rates or rules filed with the bureau, failed to properly terminate contracts of insurance, engaged in unfair settlement practices, failed to maintain a complete complaint register, failed to use standard forms, failed to provide proper notices to policyholders, and improperly shared commissions and failed to properly appoint agents, according to records.

This story originally appeared in the June 2009 print edition of Insurance & Financial Advisor.