Connecticut Insurance Commissioner Suggests Several Ways to Reduce Premiums

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The State of Connecticut Insurance Commissioner Thomas P. DiNapoli has released a report that shows the problems faced by the State of Connecticut with insurance fraud. This comes at a time when the State of Connecticut is working hard to find ways of combating insurance fraud. Over the years, it has been found that many insurance companies, particularly in the area of health care, are resorting to cheating their clients by paying them based on what they think they will pay instead of based on the actual costs involved in treating a claim. These practices have resulted in a significant rise in the rate that the State of Connecticut pays for insurance premiums.

In this regard, Mr. DiNapoli has ordered two teams of investigators to carry out fraud investigations. One team will focus on the areas of insurance fraud in the insurance market in Connecticut. The other team will look into administrative practices of the insurance commissioner's office in Connecticut. It is believed that these investigations may reveal even greater degrees of deception. Mr. Di Napoli has promised a full and independent investigation into all matters related to the insurance industry in the state of Connecticut.

The investigation has resulted in recommendations that the state of Connecticut should strengthen its anti-fraudulent protection against insurance companies. Among the recommendations is the creation of a uniform Consumer Liability Policy (CLP). The CLP is to be implemented immediately. According to the commissioner, a uniform CLP will reduce the chances of insurance companies taking advantage of their clients. This will, in turn, increase the efficiency of the State of Connecticut in dealing with insurance claims. The CLP will also make the insurance market more competitive, thereby reducing rates paid by the insurance sector.

The Insurance Commissioner has also asked the National Association of Insurance Commissioners to review the National Insurance Consumer Assessment Program (NICAP) and the Standard Insurance Comparison Data Collection (SICO) manual. These manuals could be used to measure the levels of consumer satisfaction with various types of insurance policies and company practices. They have been criticized in the past by insurance commissioner Di Napoli, because they do not provide sufficient information on the reliability of such programs. In addition, they may be biased in favor of certain insurance companies. Mr. Di Napoli has indicated that the state is ready to cooperate fully with NICAP and will complete the changes suggested by them in the mean time.

The state has embarked on a new program that would offer consumers more control over the companies that insure them. Under this program, the insurer would have to inform the state if the rate charged is unreasonable. If the company is not able to justify the rate, the state would have the authority to refuse to license the company. At present, the only way that an insurance company can be forced to change its rates is through a lawsuit. The proposed Consumer Liability Law would give the state much more power in forcing companies to lower their rates.

According to Mr. Di Napoli, the commission would also like to see the state do more to promote competition between insurers. Currently, when an insurer agrees to sell its policy in Connecticut, it pays a discounted rate to the state for doing so. The state could offer an equal or better price than a company does anywhere else in the country to get business. Mr. Di Napoli would also like to see the state take on more responsibility for ensuring that customers in Connecticut have adequate protection.

The state's Insurance Commissioner would also like to see more involvement from the public in choosing policies. Currently, anyone who wants to purchase an insurance policy in Connecticut is required to take an insurance exam. However, many people are unhappy with this process and would prefer to apply for insurance without being required to take the exam. The proposal would make it easier for individuals and small companies to get insurance in Connecticut.

Mr. Di Napoli has also suggested that the commission look into whether all of the information on a policy is accurate. There are currently many cases w here individuals have purchased insurance but found that the coverage they purchased did not exist. This could easily be prevented if all of the proper documentation was available. As it stands now, the insurance department has no way of checking this information before a policy is purchased.