Arizona DOI Recovers More Than $7 Million in 2011

The Arizona Department of Insurance (ADOI) responded to 9,013 consumer complaints and inquiries in 2011 and provided assistance in settling insurance company disputes and obtaining $7,467,542 in claim settlements and refunds for Arizona consumers.

In addition to helping consumers recover monies through the complaint and investigation process, the ADOI also conducts examinations of insurance companies for compliance with Arizona insurance laws. If an insurer fails to pay claims properly, restitution payments, including interest, are ordered. In 2011, ADOI exams resulted in $278,990 in additional consumer restitution and $873,000 in civil penalties on insurers, which were remitted to the State’s General Fund.

Consumers can file complaints with the ADOI about any type of insurance, but most complaints relate to automobile insurance, homeowners insurance, and health insurance. The most common reasons for complaints include:

Claim Delay (21%)

Claim processing delay (14%)

Unsatisfactory settlement offer (10%)

Agent handling (7%)

Source: ADOI