STATE OF CONNECTICUT
INSURANCE
DEPARTMENT
Market
Conduct Report
of
Root Insurance Company
April 5,
2022
The Market Conduct Division
of
the Connecticut Insurance Department examined by survey the
market conduct practices
of
Root Insurance Company using a sample period
of
January
1,
2020
through December 31, 2020. The examination survey was limited to Connecticut personal and
commercial insurance business.
Root Insurance Company
is
domiciled in the state
of
Ohio. By authority granted under §38a-15
of
the Connecticut General Statutes, this examination survey was conducted by Market Conduct
examiners
of
the State
of
Connecticut Insurance Department (the Department) at the Department
offices in Hartford, Connecticut.
The purpose
of
the examination survey was to evaluate the Company's market conduct practices
in the State
of
Connecticut. The examiners reviewed the Company's survey response, which
included new business, claims, complaints and underwriting information requested for the
examination period.
The Department's findings are as_follows:
• Instances
of
producers not properly licensed or appointed
• Failure to maintain complaint register in proper format
• Thirty-Four (34) instances where the Respondent failed
to undertake to pay Loss
of
Use
• Five (5) early settlements
of
a bodily injury liability claim
As it relates to the issues listed above, the Company was not in compliance with applicable
Connecticut Statutes and Regulations.
www.ctgov/cid
P.O.
Box
816
Hartford,
CT
06142-0816
Affirmative
Action/Equal
Employment
Opportunity
Employer
ST
A
TE
OF
CONNECTICUT
INSURANCE
DEPARTMENT
--------------------------------------------------------------------
X
IN THE
MATTER
OF:
DOCKET
MC
22-23
ROOT
INSURANCE COMPANY:
---------------------------------------------------------------------,'(
STIPULATION
AND
CONSENT
ORDER
It
is
hereby stipulated and agreed between Root Insurance Company and the State
of
Connecticut Insurance
Department
by and through Andrew
N.
Mais, Insurance Commissioner to wit:
I
WHEREAS, pursuant to a Market Conduct examination, the Insurance Commissioner alleges
the following with respect to
Root
Insurance Company:
1.
Root Insurance
Company,
hereinafter referred
to
as Respondent, is domiciled in the State
of
Ohio and is licensed to transact property and casualty insurance in the State
of
Connecticut.
The
NAIC
company
code
number
is
l 0974.
2.
from
January 15, 2022 through March 22 2022, the Department conducted an examination
of
Respondent's market conduct practices in the State
of
Connecticut covering the period January
1,
2020 through
December
31, 2020.
3.
During the period under examination, Respondent failed to follow established practices and
procedures to ensure compliance with statutory requirements resulting in instances of:
(a) Individuals acting as producers without required license
(b) Individuals acting as producers without required appointment
(c) Five (5) instances
of
an early bodily injury settlements
(
d)
Failure to
undertake
to pay loss
of
use coverage to property
damage
liability claimants
(c) Failure to maintain complaint register in required
format
per regulation
4.
The conduct described
in
paragraph three is in violation
of
Sections 38a-702b, 38a-702m,
52-572
of
the
Connecticut
General Statutes, and 38a-334-2(c), 38a-334-5(a), 38a-819-52
and 3 8a-8 l 9-5 3
of
the Connecticut Regulations
and
constitutes cause for the imposition
of
a
fine
or
other administrative penalty under Sections 38a-2 and 38a-41
of
the Connecticut
General Statutes.
www.ct.gov/cid
P.
O.
Box
816
Hartford, CT06142-0816
Affirmative Action/Equal Employment
Opportunity Employer
1.
WHEREAS,
Respondent
admits
the allegations in paragraphs
three
and
four
of
Article I
of
this Stipulation and
Consent
Order; and
2.
WHEREAS,
Respondent
agrees to undertake a complete
review
of
its practices
and
procedures,
with
respect to those areas
of
concern, as described
in
the
Market
Conduct
Report
and
this Stipulation, so that those areas
of
concern arc
compliant
with
Connecticut
Statutes; and
3.
WHEREAS,
Respondent
agrees to provide the Insurance
Commissioner
with a
full
report
of
findings
and
a
summary
of
actions taken to comply with the
requirements
of
paragraph
two
of
this Section within ninety (90) days
of
the date
of
this
document;
and
4.
WHEREAS,
Respondent
agrees to
pay
a fine
in
the
amount
of
$43,500
for
the
violations
described herein;
and
5.
WHEREAS,
Respondent,
being desirous of terminating administrative action without the
necessity
of
a formal
hearing
or further litigation, docs
consent
to
the
making
of
this
Consent
Order
and voluntarily waives:
a.
any right to notice and a hearing;
and
b. any
requirements
that the Insurance
Commissioner's
decision contain a statement
of
findings
of
fact and
conclusions
of
law; and
c. any and all rights to
object
to
or
challenge before the Insurance
Commissioner
or in any
judicial
proceeding
any
aspect, provision or requirement
of
this Stipulation
NOW
THEREFORE,
upon
the
consent
of
the parties,
it
is hereby ordered and adjudged:
I.
That
the
Insurance
Commissioner
has jurisdiction
of
the subject
matter
of
this
administrative proceeding.
2.
That
Respondent is fined
the
sum
of
Forty-Three Thousand Five Hundred Dollars ($43,500) for
the
violations herein
above
described.
Root Insurance
Company
David
Fogarty
By:
________________
_
(Representative
of
Insurance
Company)
-2-
CERTIFICATION
The undersigned
deposes
and says that she/he has duly
executed
this Stipulation and Consent
13th
April
Order on this
13th
day
of
April
2022, for and
on
behalf
of
Root
Insurance
Company; that she/he is
the
of
such
company, and
she/he
has authority
compliance
to execute and file such instrument.
ss
On
the
()
day
of
April
1 \ 2022, before
me
personally
appeared
David
Fogarty ,
sealer
of
the
foregoing, Stipulation
and
Consent
Order, acknowledged same to
be
her/his act and deed.
Notary
Public/Commissioner
of
The
Superior
Cou1i
Section Below
To
Be Completed
by
State
of
Connecticut Insurance Department
Dated at Hmiford,
Connecticut
this 24
day
of
May
2022.
Andrew
Andrew N.
Mais
Insurance
Commissioner
-
3-
