Progressive Insurance Fined

Washington State’s insurance commissioner Mike Kreidler fined Progressive Insurance group more than $150,000 after the company unlawfully calculated and charged incorrect premiums to more than 62,700 policy holders. From October 2005 through April 2006, both Progressive Classic Insurance and Progressive Northwestern Insurance companies used unapproved rates to calculate premiums for uninsured bodily injury and property coverage’s. The companies both undercharged and overcharged customers in Washington State. Once the mistake was realized, the company had already overcharged around $720,000. To date, the company has refunded around $341,645 to those overcharged customers. This is not the first time that Progressive has been charged for such infractions. The first violation occurred in 2005 and the company was fined $10,000.

The money paid in such fines is collected by the Insurance Commissioner and deposited into the states general fund. The fund supports various programs for Washington State residents. In 2006, the commissioner collected $2.2 million in fines.

Article Source: http://www.insurance.wa.gov/news/dynamic/newsreleasedetail.asp?rcdNum=567