Subj: Department of Insurance Saved Consumers Nearly $9 Million in 2002

Date: 2/20/2003 1:31:43 PM Eastern Standard Time

From: ODINewsRoom@ins.state.oh.us

Reply-to: newsroom@ohioinsurance.gov

To: newsroom@ohioinsurance.gov

Sent from the Internet (Details)







Welcome to the Ohio Department of Insurance NewsRoom.

For Immediate Release: Thursday, February 20, 2003



DEPARTMENT OF INSURANCE SAVED CONSUMERS NEARLY $9 MILLION IN 2002

Health, Auto, Insurance Top List of Consumer Complaints



COLUMBUS — Ohio Insurance Director Ann Womer Benjamin announced today the

Department saved consumers $8.7 million in 2002. The Department’s Office

of Consumer Services, which also includes the Ohio Senior Health Insurance

Information Program (OSHIIP), is the largest consumer protection unit in

the state.



The top ten categories of insurance consumer complaints received by the

Department in 2002 were as follows:



1. Health insurance claim denial (2,146)

2. Health insurance claim delay (785)

3. Unsatisfactory auto settlement offer (660)

4. Auto insurance claim delay (606)

5. Auto insurance claim denial (424)

6. Health insurance coverage (30

7. Auto insurance cancellation (290)

8. Homeowners claim denial (240)

9. Auto premium & rating issues (230)

10. Life & annuities misrepresentation (224).



While the total number of complaints held relatively steady across most

categories on insurance, the number of complaints about homeowners

insurance jumped 45 percent compared to 2001. Specifically, complaints

regarding cancellation or non-renewal of homeowners insurance increased 57

percent from 2001 to 2002. For both years, the majority of complaints

referenced health and automobile insurance: health claim denials, health

claim delays, and unsatisfactory automobile settlement offers shared the

top three spots for the second year in a row.



“Many homeowners insurers have adopted a hair trigger regarding customers

who file claims – in many cases companies have changed their criteria for

canceling or non-renewing policies for customers who file claims,”

Director Womer Benjamin said. “It is a troubling trend that we are

watching very closely.”



“The homeowners insurance market has not been profitable in Ohio since

1995,” Womer Benjamin continued. “In 2001, insurers paid out $1.28 in

claims for every dollar in premium they collected.”



Last year, the Consumer Services Division responded to 137,756 phone

calls, interviewed 239 consumers who visited the Department in person,

received 10,803 written complaints and responded to 5,518 on line inquires

or complaints. Department staff resolved 10,300 consumer complaints during

2002.



Insurance consumers can call the Department’s toll-free consumer hotline

at (800) 686-1526 or the senior hotline at (800) 686-1578 during normal

business hours to talk with a consumer analyst or to request information.

The Department’s award-winning website at www.ohioinsurance.gov boasts

more than two dozen consumer guides and allows consumers to submit

complaints and or inquiries on line.



“The Department plays a pivotal role in educating and assisting Ohioans

with their insurance issues,” Womer Benjamin added. “Our comprehensive

library of publications, our staff of insurance experts, and our

user-friendly website make us an invaluable resource for insurance

consumers, and we encourage them to contact us.”



The Department also strives to use technology to assist Ohioans more

effectively. Last year, the Department introduced ECHO (Expedited

Complaint Handling Option), becoming the first state to launch a web-based

application that allows the Department to share consumer complaint

information with the state’s licensed insurance carriers. This

innovative tool has resulted in faster resolution of consumer complaints

in Ohio, and several other state departments of insurance are considering

adopting similar technologies to resolve their consumer complaints more

efficiently.



OSHIIP, which celebrated its 10th Anniversary in 2002, utilizes 1,400

volunteers from all 88 counties to assist Ohio’s Medicare beneficiaries.

OSHIIP staff responded to 37,054 phone calls, counseled 45,434

beneficiaries (13,016 one-on-one and 32,418 via phone), and educated

573,090 consumers at educational events.



# # #



Ohio Department of Insurance Contacts:





Todd Boyer, ODI Communications Director

(614) 644-3481



David All, Public Information Officer

(614) 719-1503



Robert Denhard, Communications Manager

(614) 644-3366



>>> Do not reply to this email address -- your responses will not be read. This document was sent to you by a listserv, which automatically emails documents to subscribers who have requested this service.





---

You are currently subscribed to newsroom as: sallykish@aol.com

To unsubscribe send a blank email to leave-newsroom-470G@ohioinsurance.gov

Email   Website