An insurance business truism: insurance companies love to collect money, but they detest parting with it. And a prominent January settlement between the Missouri Department of Insurance and two insurance companies certainly backed up the truth behind the stereotype.
State insurance regulators settled with EMCASCO Insurance Company and Employers Mutual Casualty Company after examiners found several violations pertaining to the processing of workers’ compensation insurance.
Allegedly, the firms failed to keep updated schedule-rating worksheets, to notify insureds properly for premium adjustment eligibility and to file large deductible policies individually. Most blatantly, they employed a schedule credit rating not approved for use in Missouri.
Department of Insurance Director John M. Huff announced the terms of the settlement. The two companies will pay the State of Missouri $207,350, and policyholders will receive restitution of more than $14,000. They must come into compliance with Missouri’s regulations and statutes. And both firms must conduct a review of their workers’ compensation policies to determine whether more insureds are entitled to compensation.
Market conduct examinations and investigations permit the Department of Insurance to review insurance company practices that impact policyholders in close detail. Since 2009, such review policies and enforcement actions have generated more than $20 million in payments from insurance companies.