Slow reaction to claims costs Illinois-based insurer $200,000
Failure to live up to a promise of providing prompt investigation and settlement of claims has resulted in a $200,000 fine against an Illinois-based insurance company.
The Illinois Department of Insurance issued an order against Universal Casualty Co. for failing to adopt and maintain procedures set forth in a 2008 order, according to the department. That failure resulted in the civil penalty.
UCC is an automobile insurance company based in Elk Grove Village, Ill., that does business in Illinois, Indiana and Missouri.
Following a market conduct examination in January 2008, the department ordered UCC to create and maintain improved claims investigation and resolution procedures. Illinois regulators said they still received complaints from consumers based on the insurer’s “failure to properly address or resolve property damage and liability claims,” according to a statement.
Acting on behalf of state consumers, the Illinois Department of Insurance initiated a new investigation on July 27 and then levied the penalty, finding that UCC’s corrective measures were “unsatisfactory.”
A new consent order, signed by all parties Aug. 11, stipulates that UCC must re-visit and satisfactorily resolve several hundred previous consumer complaints. The company has informed the department of its effort to institute corrective measures, including the engagement of new management, according to Illinois regulators.
If UCC fails to undertake reforms spelled out in the order, the department said it will take further disciplinary measures.


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