Kreidler fines GEICO for overcharging thousands of customers
A Maryland-based insurance company has been fined $100,000 after overcharging thousands of its Washington state customers.
The insurer, GEICO, is also refunding $7.5 million — plus 8 percent interest — to the 25,267 affected auto insurance consumers by the end of the year.
“A computer database error caused the problem, which the company reported to us promptly,” said Washington State Insurance Commissioner Mike Kreidler. “GEICO has also agreed to a two-year compliance plan that includes multiple audits.”
An additional $50,000 fine was suspended, on the condition that the company abides by the terms of the compliance plan.
The refunds, many of which have already been paid, will average roughly $300. The company has been contacting active and former customers affected by the issue and expects to have all refunds paid by the end of the year.
On May 26, GEICO representatives self-reported the computer error, which resulted in seven percent of the company’s Washington customers being overcharged for insurance between Aug. 24, 2009 and June.
Fines collected by the insurance commissioner’s office do not go to the agency. The money is deposited in the state’s general fund to pay for other state services.
The complete order is posted at www.insurance.wa.gov/oicfiles/orders/2011orders/11-0273.pdf .
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GEICO is also refunding $7.5 million, plus 8 percent interest, to the 25267 affected auto insurance consumers by the end of the year. “A computer database error caused the problem, which the company reported to us promptly,” Washington State Insurance
A Maryland-based insurance company has been fined $100000 after overcharging thousands of its Washington state customers. The insurer, GEICO, is also refunding $7.5 million — plus 8 percent interest — to the 25267 affected auto insurance consumers by
Combs made the equity investments through Berkshire's Geico Corp., the car-insurance subsidiary whose portfolio previously was overseen by Simpson. Berkshire's biggest stock bet of 2011 was made by Buffett, who wagered more than $10 billion on
GEICO offers insurance products for motorcycles, all-terrain vehicles (ATVs), travel trailers and motorhomes (RVs). It also provides commercial auto insurance and personal umbrella protection, and offers coverage for life, boats, homes and apartments.
“GEICO has also agreed to a two-year compliance plan that includes multiple audits.” The state suspended another $50000 fine on the condition the Maryland-based insurance company abides by the terms of the compliance plan. The refunds average about
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