Delaware AARP auto insurance policy holders to receive refunds
Delaware Insurance Commissioner Karen Weldin Stewart announced, June 8, the settlement of two pending complaints against the Property and Casualty Insurance Co. of Hartford and the Hartford Underwriters Insurance Co., which together sell the AARP auto insurance program in Delaware.
The dispute between the Department of Insurance and the Hartford arose over the companies’ 2008 rate filings.
Property and Casualty Insurance Co. of Hartford’s (PCIC’s) 2008 rates became effective March 18, 2008; Hartford Underwriters Insurance Co. (HUIC) 2008 rates were effective as of July 1, 2008.
The rates were subsequently disapproved by then Insurance Department Commissioner Matt Denn.
HUIC and PCIC policyholders continued to receive rate-increase notices that would have commenced after the effective date of the disapproval order. As a result, Denn scheduled hearings against PCIC and HUIC.
Pursuant to the terms of the settlement, the Hartford will rerate all in-force PCIC policies that were the subject of a renewal notice that was issued between Aug. 24, 2008, and Sept. 6, 2008, and will rerate all in-force HUIC policies that were the subject of a renewal notice issued between Sept. 5, 2008, and Oct. 4, 2008.
By rerating these policies, the Hartford will restore the policies to the rates in effect prior to the companies’ 2008 filings. Policyholders who paid their 2008 premiums in advance will receive refunds, and those paying premiums in installments will receive credits on future bills.
As a result of the settlement, 1,276 Hartford policy holders will receive refunds or credits totaling $151,551. “The department is first and foremost a consumer protection agency,” said Stewart.
“The settlement with the Hartford achieves a substantial savings for a significant number of Delaware consumers. We continue to work diligently to ensure that Delaware consumers are not charged rates which are excessive and unfair.”