The Washington State Office of the Insurance Commissioner imposed a $950,000 fine on two pet insurers for overcharging 18,000 consumers in the state for nearly five years.
Insurance Commissioner Mike Kreidler ordered Chubb Ltd.'s ACE American Insurance Co. and Indemnity Insurance Co. of North America subsidiaries to repay $4.7 million, including interest, to policyholders by April 15.
Kreidler suspended $200,000 of the fine and imposed a compliance plan that will require the insurers to charge accurate rates and correct other law violations his office uncovered during a yearlong examination. The suspended fine will be reimposed in part or in full if the companies fail to comply with the plan or commit any related law violations within two years.
Healthy Paws Pet Insurance sold ACE policies from January 2013 until June 2016 and started selling Indemnity policies in June 2016.
In July 2019, Kreidler levied a $20,000 fine on Healthy Paws for identifying as the insurer in communications with consumers, allowing unlicensed people to sell insurance on its behalf, offering discriminatory promotions to consumers and for using unappointed producers to sell insurance.