Florida Insurance Commissioner Kevin McCarty has fined thestate's second-largest property insurer $1.26 million following amarket conduct examination.
According to an orderfrom the state Office of Insurance regulation, Universal Property& Casualty Insurance Company (UPCIC) has engaged in somequestionable claims practices, hasn't logged consumer complaintsappropriately, and the insurer allegedly has not givenpolicyholders proper notice of nonrenewal.
|The insurer allegedly used consumers' credit history to denyclaims.
|The OIR says more than 260 policies were canceled without the100-day notice required by law.
|The OIR's examination spanned from the start of 2009 to May2011.
|UPCIC, licensed since 1997, must submit reports, institutecorrective actions and pay restitution, if appropriate.
|The order is not final, meaning the insurer has an opportunityto request a hearing with an independent administrative law judgewithin 21 days.
|OIR says Florida-domestic UPCIC holds more than $765 million inwritten annual premium and over 542,000 policyholders.
|In a joint statement, Florida Chief Financial Officer JeffAtwater and Insurance Consumer Advocate Robin Westcott commendedthe OIR's actions.
|“For far too long, this company unjustly denied claims andforced consumers into financially devastating situations,” saysAtwater.
|“This is a win for the people of Florida,” Westcott adds. “Thisconsent order will begin the process of giving Florida'spolicyholders the confidence that when they purchase a homeownersinsurance policy, they are truly protecting their home andfamily.”
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