The Kansas Commissioner of Insurance has since fully reviewed said Kansas report which is attached herein as Attachment A.
Auto Club’s complaint logs in which all non-insurance department complaints are recorded were not set up in the format required by K.S.A. 40-2404(10).
Auto Club did not file a deviation for the Personal Injury Protection (PIP) coverage in the Auto Club Family Insurance Company (“ACFIC”) policy for specific types of vehicles. 10 out of 13 ACFIC policies received a lower premium than was filed.
Auto Club Inter-Insurance Exchange utilized an application which contained the following statement, “I warrant that the statements hereon are true and correct and I understand these statements will be relied upon by the Automobile Club Inter- Insurance Exchange in issuing the policy.
Form #5901KS(4/2004), (the Homeowners application), was approved by KID to be effective 4/14/2004. Auto Club was utilizing an individual’s credit history as an underwriting tool in determining the eligibility of an account for their Homeowners program. K.S.A. 40-5106 requires a company to disclose to the applicant an internal appeal process exists as provided by paragraph (b) of K.S.A. 40-5107. The Auto Club took adverse action against individuals based solely or partially on their credit history. However the consumer was not advised of the internal appeals process per
Six (6) Auto Club policies sampled by the MCE team which were cancelled or non- renewed for underwriting reasons contain the following language in the notice letters:
“In addition, applicant’s credit history represents a high risk for future loss. The major factors influencing our decision may have included bankruptcy, overdue accounts, bad debts and collection items.”
In the Matter of Auto Club Group of Missouri, Automobile Club Inter-Insurance Exchange & Auto Club Family Insurance Company – Docket No. 3591-MC