Record Year for Fines and Restitution In Pa.
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The collections were from enforcement and market conduct actions, as well as 10 multi-state examinations where
Highlights from 2012 enforcement and market conduct actions include:
- American International Group, Inc. (AIG) – A multi-state examination of AIG and its workers' compensation affiliates resulted in the largest-ever single amount in fines and assessments in the department's history. The penalty,
$16.8 million, included $8.6 millionin fines, $3.6 millionto the Workers' Compensation Security Fundand $4.6 millionin premium taxes.
- Life Insurance Industry – Five of the multi-state examinations focused on life insurance companies and their claims business practices. As a result, these companies have agreed to adopt additional pro-consumer claims practices that include using the
Social Security Administration's Death Master File on a uniform basis when processing and paying life insurance claims.
- Consumer Protection – The department's
Office of Market Regulationconcluded the year with responding to more than 13,000 written consumer complaints and revoking or suspending the insurance licenses of nearly 70 individual licensees.
To review the multi-state settlement agreements, and to view the comprehensive list of enforcement and market conduct actions taken by the department, go to www.insurance.pa.gov and choose the "consumer protection" tab.