Good News For Auto Policyholders, Rogue Agent’s Victims

HARTFORD — Insurance Commissioner Thomas R. Sullivan announced November 4 that Connecticut continues to see favorable trends in auto insurance premiums. According to the 2005-2006 auto insurance database report published by the National Association of Insurance Commissioners (NAIC), Connecticut policyholders saw an average premium decrease of 1.5 percent for 2006 over 2005.  

The data illustrates that the competitiveness of the marketplace has had a positive impact on the residents of Connecticut.

The news is even better for Connecticut residents when considering a four-year trend from 2002 to 2006. In Connecticut, the average premium combining collision, comprehensive, and liability coverages rose just 1.6 percent, while the national combined average premium increased 4.5 percent, and the Consumer Price Index increased nearly 12 percent, during the same period.

“The number of companies in our auto insurance market continues to grow, and Connecticut residents continue to reap the benefit of competition,” Commissioner Sullivan said.

A sample of the report is posted on the Pressroom page: www.naic.org/press_home.htm of the NAIC website. The complete, 247-page report also is available for purchase via the NAIC Store.  

In related news, Commissioner Sullivan announced November 10 that consumers harmed by Thomas Cipriano’s actions would receive compensation totaling nearly $483,000.

Last fall, the insurance department suspended a license for Waterbury insurance agent Thomas Cipriano for allegedly violating the state’s Unfair Insurance Practices Act. Since then, Commissioner Sullivan and insurance department staff have worked to find a way to resolve the actions of the rogue agent, and provide some measure of relief to the victims.                                                                                         

The insurance department appreciates the cooperation of Jackson National Life Insurance Company, and recognizes that the agent was acting alone. Jackson National Life Insurance Company agreed this week to provide $482,849 in compensation to consumers harmed by Cipriano’s actions, as a measure of goodwill.

 “This closes the book on our desire to remedy the wrongdoings of Thomas Cipriano,” said Commissioner Sullivan.

Commissioner Sullivan thanked Attorney General Richard Blumenthal and members of his office for the assistance in the investigation, including Assistant Attorney General Mark Kohler, and those within the insurance department who worked on the investigation, including Tony Caporale and Stephen DeAngelis.

Mr Blumenthal said, “I am pleased that we won restitution — about $483,000 — for consumers bamboozled by their broker. Cipriano’s scam was scandalous and scurrilous, robbing consumers of their hard-earned savings to enrich himself. I’m pleased that Jackson has done the right thing, agreeing to compensate customers for their devastating losses.”

The Connecticut Insurance Department takes consumer allegations and investigates all complaints that are submitted. Consumers who are witness to fraud or unfair practices, are encouraged to report it to the Insurance Department Consumer Affairs Division toll free at 800-203-3447, direct at 860-297-3900, or online at www.ct.gov/cid.