Date: July 5, 2011
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov
OCI Updates Publications on Auto Insurance and Complaint Statistics
Madison, WI—Wisconsin Insurance Commissioner Ted Nickel announced the update of two important publications: the Consumer's Guide to Auto Insurance and the 2010 Insurance Complaints and Administrative Actions."
"Informing the public is a key part of OCI's mission," said Nickel. "Both of these publications are among the most viewed and requested publications that the agency produces."
A number of changes have been made to the auto insurance statutes, most recently by 2011 Wisconsin Act 14. The Consumer's Guide to Auto Insurance provides details on requirements in current law as well as the Act 14 changes that will become effective on November 1, 2011. The publication provides information to consumers about types of insurance coverage, tips for saving money and other information that consumers can use to make informed decisions about purchasing auto insurance. The guide also provides help on what to do if consumers are involved in an auto accident and information on Wisconsin's mandatory liability insurance law.
The 2010 Insurance Complaints and Administrative Actions provides a summary of the complaints received by OCI across all lines of insurance covering insurer activities such as underwriting and rating, marketing and claims processing. During 2010, over 7,400 consumers contacted OCI to file a complaint. OCI assisted in recovering more than $5.1 million for consumers and issued over $2.2 million in forfeitures.
A complaint is defined as any written communication that expresses dissatisfaction with an insurance company or agent. The report lists those insurance companies who have had at least five complaints, had written at least $100,000 of premium in the state and had a complaint ratio that exceeds the statewide average for that specific type of insurance.
Not every complaint means a company violated state statutes. In fact, some complaints may represent an expression of frustration or a misunderstanding between a consumer and a company. These complaints are resolved rather quickly. For complaints that require additional regulatory action by OCI, the agency works with the insurance company to make sure that the issues are expediently resolved and consumers are protected. The complaint process also allows OCI to determine if there are developing problems in the marketplace that require regulatory review.
The report is available in both English and Spanish and categorizes complaints by the type of coverage (auto, property and casualty, accident and health, life, and annuities) and also by the reason for the complaint (underwriting and rating, marketing and sales, claim handling, policyholder service or "other").
"OCI considers consumer complaints to be at the core of our market oversight responsibility," Nickel said. "I encourage consumers to contact us if they need to file a complaint or if they are looking for information on any insurance question."
Consumers interested in obtaining a copy of the Consumer's Guide to Auto Insurance and the 2010 Insurance Complaints and Administrative Actions report or other free publications from OCI can visit the OCI Web site at oci.wi.gov, write to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, or call 800-236-8517.
Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.