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Violation Tracker Individual Record

Company: Preferred Mutual Insurance Company
Penalty: $103,900
Year: 2021
Date: November 9, 2021
Offense Group: consumer-protection-related offenses
Primary Offense: insurance violation
Violation Description: Prefered Mutual agreed to pay a $103.900 fine in settlement of allegations it failed to advise appropriate applicants in a denial of claim that late notice will be excused where the applicant can provide reasonable justification of the failure to give timely notice; failed to mail verification forms within 10 business days after receipt of No- Fault application; failed to properly inform applicants of reimbursement for any loss of earnings and reasonable transportation expenses incurred in complying with insurer requested examinations under oath and medical examinations; failed to produce objective standards required for the administration of examinations under oath; failed to pay or deny claims within 30 calendar days after receipt of proof of claim including all relevant verification requests; failed to exclude interest and attorneys' fees on account of overdue claims from insurer's rate making calculations; failed to properly calculate payments for loss of earnings from work; failed to reduce the amount paid under a qualified wage continuation plan that provided benefits less than the applicant's salary by the amount required to be paid in satisfaction of the New York State Disability Law; failed to timely advise affected insureds of the right to be reimbursed for transportation expenses in the event of the theft of the entire vehicle; failed to timely report total theft losses to the designated central organization; and failed to report third-party property damage losses exceeding $2,500 to the designated central organization and the National Insurance Crime Bureau as appropriate in the time allotted.
Level of Government: state
Action Type: agency action
Agency: New York Department of Financial Services
Civil or Criminal Case: civil
Facility State: New York
Source of Data: (click here)
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Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.