Pledging to be “vigilant” in enforcing the state’s insurance laws, Connecticut’s insurance commissioner has fined Zurich Insurance Group $235,000 for several violations, including the use of unlicensed agents and adjusters.

Thomas R. Sullivan

Thomas R. Sullivan announced the total fine is split among violations by three of the Illinois-based companies subsidiaries: Assurance Co. of America, based in New York ($141,500); Zurich American Insurance Co., based in New York ($61,500) and Universal Underwriters Insurance Co. of Kansas ($32,000).

In addition to using unlicensed personnel, Sullivan said the companies’ violations also include improperly rating commercial lines and lack of oversight for document retention.

Under Connecticut law, insurers are required by law to formally appoint and register with the state all agents who sell insurance products on their behalf. Zurich, through its subsidiaries, had 42 instances where agents were not appointed and 23 instances where individuals acted as a casualty adjuster without being licensed under the guidelines of Connecticut law, according to Sullivan’s office.

The insurer also did not consider the amount attributed to one’s inability to use their property, or “loss of use,” in settlements of automobile property damage liability claims.

Zurich complied with that stipulation and Sullivan’s final order and will submit a compliance report within 90 days.

In a statement to IFAwebnews.com, the insurer said it did not admit liability in the stipulations.

“In addition, several of the alleged violations related to differences of interpretation of the applicable law and/or department bulletins, and we felt it best to resolve the issues in a constructive fashion rather through an adversarial proceeding,” Zurich said. “Moreover, we have pro-actively agreed to change certain of our business practices going forward.”

All fines collected by the Connecticut Insurance Department are remitted to the state’s general fund.

“We will continue to be vigilant in enforcing Connecticut’s insurance laws,” said Sullivan in a statement, “and consumers can protect themselves by verifying an agent is licensed to sell insurance in Connecticut.”