Geico is the auto insurer best known for its funny TV ads featuring a talking gecko and sensitive cavemen.
But Connecticut Insurance Commissioner Thomas Sullivan wasn’t laughing Thursday, as he announced his agency dropped the hammer on several Geico units to the tune of $177,500 for a laundry list of infractions.
Sullivan said his office cited four Geico subsidiaries for improper rating, claim delays, loss of use, and using unlicensed adjusters among other violations.
The subsidiaries fined include Geico Casualty Co. ($49,000); Geico General Insurance Co. ($31,500); Geico Indemnity Co. ($64,500); and Government Employees Insurance Co. ($32,500).
Geico and its subsidiaries are based in Maryland.
While the violations varied by company, most did not comply with state law requiring that optional coverage for safety glass repair or replacement be offered at all deductible levels.Â
The insurance department also found Geico using unlicensed insurance adjusters .
Other violations included instances where units did not include in their settlements the amounts attributed to an insured’s inability to use his property, which is commonly referred to as “loss of use.”
“Connecticut statutes are in place to protect consumers, and violations of these laws are unacceptable.” Sullivan said in a statemen t. “We will continue to scrutinize companies in this industry to ensure they are committed to conducting business within the boundaries of our insurance laws.”
Geico complied with the stipulation and final order, and must submit a compliance report to the commissioner within 90 days, Sullivan said.
