Regulator takes legal action against Access Insurance to protect consumers
News: 2017 Press Release
SACRAMENTO, Calif. — The California Department of Insurance last week issued an Order to Show Cause, Accusation, and Notice of Noncompliance charging Access Insurance Company and some of its affiliates with engaging in improper claims handling and improper rating and underwriting practices in violation of the California Insurance Code and the Fair Claims Settlement Regulations.
"Consumers should have confidence that anyone selling them insurance in California is complying with our consumer protection laws," said Insurance Commissioner Dave Jones. "Making sure insurance companies deliver on their promises to consumers is a critical part of the department's mission."
In response to numerous consumer complaints about Access' business practices, the department launched an investigation that revealed over 40 different alleged statutory and regulatory violations. The alleged violations in the Order to Show Cause and Accusation include misrepresentation of pertinent facts to claimants, failure to acknowledge and act reasonably promptly, and failure to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies.
The Notice of Noncompliance alleges Access's rating plans, rating systems, rates and underwriting guidelines, and their implementation by Access and its affiliates violated California law. These allegations include cancelling policies for reasons not permitted by law, failure to give appropriate discounts, and overcharging consumers for certain fees.
In addition to suspension of Access's Certificate of Authority, the Order to Show Cause seeks monetary penalties against Access and its affiliates of up to $5,000 for each alleged violation, or if the act was willful, up to $10,000 and an order requiring Access to cease and desist from further engaging in methods, acts or practices that are unfair and deceptive within the meaning of the Unfair Practices Act and Fair Claims Settlement Regulations.
The Notice of Noncompliance requires Access to correct any unlawful practices within 10 days of receiving the notice. For each allegation, Access must also show proof of compliance or correction. If Access fails to comply within the allotted time the department will set a public hearing and if the commissioner finds Access to be in violation, he may order payment of monetary penalties and other appropriate corrective action.
Media Notes:
- Link to legal documents.
- Access is ordered to show why Insurance Commissioner Dave Jones should not exercise his authority pursuant to Insurance Code section 704 to suspend Access's Certificate of Authority to do business with California consumers.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
