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Shapiro Administration Recovers More Than $10 Million for Pennsylvania Consumers in 2023

02/01/2024

PID also helped Pennsylvanians locate over $144 million in lost policy benefits last year

Harrisburg, PA – Under Governor Josh Shapiro's leadership and commitment to protect consumers and serve Pennsylvanians, the Pennsylvania Insurance Department (PID) today announced that more than $10 million was recovered in 2023 for consumers who had funds stolen, payments improperly processed, or other forms of restitution or credit due as a result of company errors or unethical conduct. In addition, PID connected more than 6,400 Pennsylvanians with upwards of $144 million in benefits last year by way of the National Association of Insurance Commissioners' (NAIC) Life Insurance Policy Locator Service.

“The Shapiro Administration is in the business of getting things done on behalf of the Commonwealth and Pennsylvanians. PID continues to hold insurance companies accountable for unfair practices that negatively affect consumers across the state," said Pennsylvania Insurance Commissioner Michael Humphreys. “Consumer protection is at the forefront of what we do at PID. It's critical that we remain vigilant in our fight to best serve Pennsylvanians and ensure consumer rights and protections – guaranteed by state law – are upheld across the Commonwealth."

PID is charged with regulating the business practice standards of companies and insurance professionals to ensure that consumers in Pennsylvania receive all protections to which they are entitled under the state's laws and regulations.

This work involves researching and resolving complaints from consumers, investigating allegations of misconduct from insurance companies, agents, brokers, and others, and ensuring that practicing professionals are properly licensed.

During 2023, PID receive almost 14,000 complaints, which resulted in Pennsylvanians receiving approximately $10.5 million in some form of reimbursement, restitution payment, or credit, from the Department's efforts across all lines of insurance. Below are some examples:

  • Reprocessing of claims that were improperly handled, in many cases due to financial requirements and visit limits that were not compliant with mental health parity laws and regulations
  • Restoration of stolen funds when an agent collected payment from a consumer for a policy or annuity but did not send the money to the insurance company
  • Refunding of copays, and payment of previously denied or underpaid claims when a company did not pay a claim as it should under the consumer's policy
  • Refunding of overcharged premiums when an insurance company was found to be charging premiums above the rate that had been approved by the Insurance Department.
     

The NAIC's Life Insurance Policy Locator Service is a service that helps consumers locate lost life insurance policies and annuity contracts of deceased loved ones. Individuals who believe they are beneficiaries, executors or legal representatives of a deceased person may submit a search request form. Established in 2016, this service has helped Pennsylvanians locate more than $400 million from lost life insurance policies and annuity contracts of deceased loved ones.

Consumers who have a question about their insurance or need to file a complaint may contact the Insurance Department's Bureau of Consumer Services at 1-877-881-6388 or online.

Follow PID on X and like the Department on Facebook.  

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