Annual Summary of 2008 Connecticut Executive and Legislative Actions Concerning the Insurance Industry
Thomas R. Sullivan's first full year as Commissioner of the State of Connecticut Insurance Department saw an increase in both the number of fines levied against insurance companies and brokers and the total dollar figure of those fines.
In a recently released report, the Department said that its Market Conduct Division collected from 80 insurance companies $4,179,721 in fines during 2008 for violations of state law. The largest fine was $2.1 million against Assurant Health for violations arising under short-term health insurance laws and regulations. In addition, Assurant was required to make $1 million in restitution to policyholders. The most frequent violation in 2008 was doing business as an unlicensed or non-appointed agent in the state.
This activity compares to the $1.3 million that the Department collected in 2007 -- a 300 increase. It also appears that the dramatic increase in fines from 2007 to 2008 will continue into 2009 as the Department has already levied fines in excess of $5.9 million this year for the unauthorized operation of an insurance company in the state.