OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued a fine of $950,000 against ACE American Insurance Co. and Indemnity Insurance Co. of North America for overcharging 18,000 Washington consumers for nearly five years. He ordered the companies to repay $4.7 million – including interest – to policyholders no later than April 15.
Reimbursements to policyholders will range from less than $1 to over $2,500.
“We found tens of thousands of law violations among the two companies,” said Kreidler. “The most egregious violations were overcharging consumers through rate increases and not disclosing the increases to their customers.”
Kreidler suspended $200,000 of the fine and imposed a compliance plan that will require ACE and Indemnity both – Chubb companies – to charge accurate rates and correct other law violations his office uncovered during a yearlong examination.