HARRISBURG, PA — The Pennsylvania Insurance Department (PID) announced the recovery of more than $10 million last year for consumers who were victims of theft, improper payment processing, and other forms of misconduct. This hefty sum represents restitutions and credits due to company errors or unethical behavior.
Aiding consumers across the state, PID not only recovered these substantial funds but also connected over 6,400 Pennsylvanians with more than $144 million in benefits via the National Association of Insurance Commissioners’ (NAIC) Life Insurance Policy Locator Service.
These achievements underscore PID’s ongoing commitment to upholding consumer rights and ensuring fair business practices in the insurance sector. “The Shapiro Administration is in the business of getting things done on behalf of the Commonwealth and Pennsylvanians,” said Pennsylvania Insurance Commissioner Michael Humphreys. “Consumer protection is at the forefront of what we do at PID.”
The department’s primary role involves regulating the business practice standards of insurance companies and professionals. In doing so, it ensures that Pennsylvania’s consumers receive all the protections they are entitled to under state law. This work spans researching and resolving complaints from consumers, investigating allegations of misconduct from insurance companies, agents, brokers, and others, and ensuring that practicing professionals are properly licensed.
Last year alone, PID handled almost 14,000 complaints. These efforts resulted in approximately $10.5 million in reimbursements, restitution payments, or credits for Pennsylvanians. Notable examples include the reprocessing of claims that were improperly handled, often due to non-compliance with mental health parity laws and regulations; the restoration of stolen funds when an agent failed to send a consumer’s payment to the insurance company; refunding of overcharged premiums when an insurance company was found to be charging more than the approved rate; and refunding of copays and payments of previously denied or underpaid claims when a company did not pay a claim as it should under the consumer’s policy.
In addition to these recoveries, PID also facilitated connections between Pennsylvanians and the NAIC’s Life Insurance Policy Locator Service. This valuable tool helps consumers locate lost life insurance policies and annuity contracts of deceased loved ones. Since its establishment in 2016, the service has helped Pennsylvanians locate more than $400 million from lost policies and contracts.
The PID’s work in 2023 is a testament to the department’s unwavering commitment to safeguarding Pennsylvanians’ rights and ensuring they receive what they are entitled to. As Humphreys noted, “It’s critical that we remain vigilant in our fight to best serve Pennsylvanians and ensure consumer rights and protections – guaranteed by state law – are upheld across the Commonwealth.”
Pennsylvanians who have questions about their insurance or need to file a complaint may contact the Insurance Department’s Bureau of Consumer Services at 1-877-881-6388 or online.
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