Universal Casualty Company (UCC) Banned in Indiana
Indiana has ordered Elk Grove Village, Illinois-based auto insurer Universal Casualty Company (UCC) to stop writing the new insurance policies in the state until the company can demonstrate “improved business practices,” according to the Indiana Department of Insurance (IDOI). IDOI has also fined the company $200,000.
UCC’s market share is less than 1 percent of the auto insurance business in the state, but it ranked first on the IDOI’s complaint index for 2008. The department said it received more than 200 complaints from policyholders regarding the UCC’s unwillingness to pay claims properly and on time.
The Missouri Department of Insurance recently banned UCC of writing new business in that state for the same reasons.
UCC was first investigated by in 2004 and fined the company $35,500 by IDOI for the similar reasons. The state confirmed that UCC got enough time to improve its business practices, but continued consumer complaints prompted further investigation.
Under an order from the commissioner filed June 11, the company is obliged to submit and implement a ” Stringent Compliance Plan ” before resuming the new business in the state. Failure to submit such a plan in a timely manner will result in an additional fine of $ 100,000, the IDOI said. The order also calls for the reopening of all UCC consumer complaints since 2005, the final determination of all such allegations will be subject to regulatory approval.
The company will be subject to further review to ensure full compliance and the department said.
The IDOI said a normal customer complaint would “involve the consumer calling the insurance company many times never receiving a human response, the company does not pay enough to properly fix the car, or refuses to pay rent.”
Further details could be accessed at Department of Insurance website, www.in.gov/idoi/index.htm
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