State regulator fines Zurich Insurance Group

Connecticut Insurance Commissioner Thomas Sullivan has fined several Zurich Insurance Group companies a total of $235,000 for having unlicensed agents and adjusters, improperly rating commercial lines, and lack of oversight for document retention. 

The fine was levied against three of Zurich’s subsidiary companies including the Assurance Company of America ($141,500), Zurich American Insurance Company ($61,500), and Universal Underwriters Insurance Company ($ 32,000)

In Connecticut, Insurance companies are required by law to formally appoint and register with the state all agents who sell insurance products on their behalf. When combined, Zurich Insurance Group had 42 instances where agents were not appointed and 23 instances where individuals acted as a casualty adjuster without being licensed in accordance with Connecticut law, the insurance department said. 

Other violations included improper rating of commercial lines policies and not considering the amount attributed to one’s inability to use their property, often referred to as ‘loss of use’ in settlements of automobile property damage liability claims.

The company complied with the stipulation and final order, and will submit a compliance report to the commissioner within 90 days.

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