Missouri insurance regulators recently announced a $1.25 million settlement with nine affiliated insurance companies as a result of a market conduct examination into their handling of workers' compensation insurance. Specifically, the Missouri Department of Insurance alleged in the settlement that the companies failed to make individual risk filings with the Department for 2,158 large deductible workers' compensation insurance policies with Missouri premium or exposure. The settlement also alleges that the companies failed to use mandatory forms, used withdrawn forms, erred in calculating the administrative surcharge rate—and in collecting the administrative surcharge, incorrectly calculated the employer's liability increased limits, incorrectly calculated the schedule rating modification and failed to provide timely responses to some information requests.
Under the settlement agreement, the companies agreed to take remedial action bringing them into compliance with statutes and regulations in Missouri and to pay the $1.25 million settlement amount to the Missouri State School Fund.
According to the Missouri Department of Insurance's website, since the beginning of 2009, Market Conduct enforcement actions have generated more than $36 million in payments from insurance companies.
For More Information
For additional information regarding these issues, please contact: