Refunds by 2 insurance companies reach $5.7 million | SummitDaily.com

Refunds by 2 insurance companies reach $5.7 million

THE ASSOCIATED PRESS

DENVER – Two insurance companies have refunded about $5.7 million to Colorado customers affected by billing and record keeping errors, state officials said Thursday.Anthem Blue Cross Blue Shield has restored nearly $3.2 million to more than 7,200 holders of its health insurance policies, the Department of Regulatory Agencies said.Hartford Financial Services Group has returned more than $2.5 million to holders of its commercial automobile insurance. Refunds from the company averaged about $540 per policyholder, though some received up to $20,000.Errors in records and claim processing at Anthem Blue Cross Blue Shield apparently occurred after the company adopted a new computerized claims processing system in the summer of 2006, the agency said. The new system failed to correctly track and maintain policyholders’ claim histories.Hartford Financial Services Group refunded money after finding that nearly 5,000 policyholders were overcharged for years on insurance premiums that incorrectly included no-fault insurance. Colorado’s no-fault law was repealed in July 2003. Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Co. of the Midwest, Hartford Underwriters Insurance Company and Twin City Insurance Company were involved in the refunds.”These errors, while not intentional, harmed consumers and businesses, by imposing costs on consumers where there should not have been costs,” Colorado’s Commissioner of Insurance Marcy Morrison said. “I’m relieved that both companies are taking steps to restore monies owed to their customers and to prevent this from happening again.”