Dover – Delaware Insurance Commissioner Karen Weldin Stewart announced today the settlement  of two pending  complaints against the Property and Casualty Insurance Company of Hartford (“PCIC”) and the Hartford Underwriters Insurance Company (“HUIC”) (collectively, “the Hartford”) which, together, sell the AARP auto insurance program in the State of Delaware.
                                       
The dispute between the Department of Insurance and the Hartford arose over the companies’ 2008 rate filings.  PCIC’s 2008 rates became effective on March 18, 2008; HUIC’s 2008 rates were effective as of July 1, 2008.  The rates were subsequently disapproved by then Insurance Department Commissioner Matt Denn.   HUIC and PCIC policyholders continued to receive rate increase notices that would have commenced after the effective date of the disapproval Order.  As a result, Commissioner Denn scheduled hearings against PCIC and HUIC.

Pursuant to the terms of the settlement, the Hartford will re-rate all in-force PCIC policies that were the subject of a renewal notice that was issued between August 24, 2008 and September 6, 2008 and will re-rate all in-force HUIC policies that were the subject of a renewal notice issued between September 5, 2008 and October 4, 2008.  By re-rating these policies the Hartford will restore the policies to the rates in effect prior to the companies’ 2008 filings.  Policyholders who paid their 2008 premiums in advance will receive refunds and those paying premium in installments will receive credits on future bills.

As a result of the settlement, 1276 Hartford policyholders will receive refunds or credits totaling $151,551.  In announcing the settlement, Commissioner Stewart said: “The Department is first and foremost a consumer protection agency.  The settlement with the Hartford achieves a substantial savings for a significant number of Delaware consumers.  We continue to work diligently to ensure that Delaware consumers are not charged rates which are excessive and unfair.” 

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7304