Esurance fined $154,000 for market conduct violations

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The Colorado Division of Insurance has fined Esurance, a California-based property and casualty insurer, $154,000 for various violations of the state’s market conduct regulations.

Esurance sells automobile liability and physical damage insurance directly to Colorado residents via telemarketing and the company’s website.

Those violations included:

  • Failure to offer to exclude a specific driver and to disclose the modified premium that would result from this exclusion. (Excluding a high-risk driver can prevent a premium increase, nonrenewal or cancellation of the household policy.)
  • Failure to provide the reason for one of these specific actions.
  • Missing information on the premium increase notices, including notice requirements for both the Fair Credit Reporting Act and the policyholder’s right to replace the insurance through an assigned risk plan.

The “failure to offer to exclude a specific driver” violation relates law that allows policyholders to exclude a member of the household from an automobile coverage insurance policy.