GEICO is the seventh largest writer of private passenger auto insurance in Massachusetts
The Commissioner of Insurance has fined Government Employees Insurance Company (GEICO)$275,000 as part of an agreement the insurer has entered into with the Division of Insurance. Under the terms of the agreement, GEICO must modify certain portions of its current business procedures, as well as implement new procedures in addition to paying the $275,000 fine. The Division says that an additional $275,000 fine has been suspended pending a future re-examination of the insurer.
Today’s announcement is the result of our ongoing monitoring of the insurance marketplace to ensure that consumers are receiving the benefits to which they are entitled and companies are competing on a level playing field,” said Commissioner Murphy. “The company’s actions created disruptive issues within the auto insurance marketplace in Massachusetts.”
- Properly report past claim information to the Merit Rating Board and other insurance carriers for claims that occurred between May 18, 2009 and June 1, 2013.
- Provide notice of at-fault accident determinations and the right to appeal those determinations to operators not previously notified of GEICO’s at-fault accident determinations between May 18, 2009 and June 1, 2013. Operators affected by this inconsistency in GEICO’s prior business practices will be allowed to appeal those determinations to the Division’s Board of Appeal. Consumers who elect to appeal will have their $50 filing fee reimbursed by GEICO.
- Implement new business practices to ensure that operators determined to be at-fault for accidents receive timely notice of the determination as well as an explanation of their rights to appeal the determination.
- Routinely audit the effectiveness of new business practices designed to prevent errors and report the results to the Division over the next two years.