HARRISBURG, PA — The Pennsylvania Insurance Department (PID) has announced a significant achievement in its ongoing commitment to protecting state residents, returning nearly $162 million to Pennsylvanians in 2024. Through a combination of regulatory actions and consumer-focused initiatives, the department ensured that funds due to individuals were rightfully returned, bolstering its role as a key advocate for insurance accountability.
Of the total amount, $27 million was recovered in direct restitution for Pennsylvanians who experienced financial losses due to misconduct, payment errors, or other violations by insurers or insurance professionals. In addition, the department helped facilitate the recovery of approximately $135 million through the National Association of Insurance Commissioners’ (NAIC) Life Insurance Policy Locator service. This service reunited some 5,400 residents with previously unclaimed life insurance benefits and annuities.
“Every day, our team at PID is working to get stuff done for Pennsylvanians and we’re continuing to hold insurers and insurance professionals accountable for unfair practices that negatively affect our residents,” said Pennsylvania Insurance Commissioner Michael Humphreys. “PID is here to help – and as we keep working to recover more of Pennsylvanians’ hard-earned money, please reach out to our team with any complaints or concerns with an insurer or agent.”
Highlights of Consumer Protections
The PID functions as a safeguard against unfair and unlawful practices within the insurance industry, regulating the activities of insurers and agents in the Commonwealth. Among its primary responsibilities, the department investigates consumer complaints and enforces both state and federal laws to ensure fairness and transparency in insurance transactions.
Over the course of 2024, PID received more than 16,500 individual complaints from Pennsylvanians. Through detailed investigations and enforcement actions, the department was able to resolve issues across a broad range of scenarios, helping consumers secure refunds, claims payouts, and other financial remedies.
Specific examples of the department’s work included:
- Resolving Claim Errors – When insurance companies improperly denied or underpaid claims, PID intervened to ensure policyholders received their rightful benefits.
- Recovering Stolen Payments – For cases involving agents who misappropriated payments, the department stepped in to recover funds and redirect them to the correct recipients.
- Refunding Overcharges – PID identified and corrected instances where companies charged customers premiums above approved rates, securing refunds for affected individuals.
- Upholding Legal Standards – By enforcing laws, PID helped to prevent practices like unwarranted policy cancellations or coverage denials.
Life Insurance Policy Locator Service
A notable aspect of PID’s consumer protection work is its partnership with the NAIC Life Insurance Policy Locator, a critical tool for families managing the aftermath of a loved one’s passing. To comply with Pennsylvania law, all life insurance providers operating in the state participate in this program.
The policy locator service uses an extensive database to identify unclaimed life insurance policies and annuity contracts. When a request is submitted, the NAIC contacts participating insurers to determine whether a policy exists under the deceased individual’s name. Insurers then notify beneficiaries if they are entitled to receive funds. This initiative aims to eliminate much of the confusion and complexity that can arise in locating lost insurance benefits, offering families clarity during difficult times.
Commitment to Consumer Advocacy
The department’s work extends beyond rectifying errors and reclaiming funds to ensure the continuous improvement of industry standards. PID enforces compliance with laws designed to promote fair practices, holding insurers and agents accountable for behavior that could adversely affect consumers.
Looking Ahead
The Pennsylvania Insurance Department’s success in recovering nearly $162 million underscores its dedication to safeguarding the financial interests of its residents. Through regulatory diligence, consumer education, and expanding access to services like the Life Insurance Policy Locator, PID is working to build greater trust and transparency in the state’s insurance market.
Moving forward, the department has pledged to continue advocating for Pennsylvanians while enhancing oversight to protect against evolving challenges in the industry. With a determined focus on consumer protection and fair practices, PID remains a steadfast ally for residents navigating the complex world of insurance.
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