Posted on: Tuesday, November 26, 2002
2 insurers still deny privacy charges
By Frank Cho
Advertiser Staff Writer
TIG Insurance of Hawaii and Progressive Insurance Cos. are continuing to contest charges that they broke state insurance laws related to using criteria such as credit history, age or driving experience to determine auto policy premiums for some customers.
Both companies, which together represent fewer than 10 percent of Hawai'i's auto insurance market, repeatedly have denied any wrongdoing.
The state has now ordered both carriers to appear before an administrative hearing to explain their positions.
"We have received from the insurance department a notice that indicates that the department believes we are in violation of state statutes because of the use of credit (scoring)," said Leslie Kolleda, a spokeswoman for Progressive Insurance. "We believe that all of our companies in the state of Hawai'i are in compliance ... we look forward to providing our position at the hearing."
Officials at TIG Hawaii declined to comment.
The state cited the insurers and others after an investigation of the auto insurance industry last year found widespread violations of Hawai'i insurance laws that prohibit using criteria such as age, gender, credit history or marital status to determine the amount of auto insurance premiums.
"I can't really comment on the case until it goes to a hearing, but this has been a big issue here and on the Mainland," said state Insurance Commissioner Wayne Metcalf.
TIG covers about 17,700 Hawai'i policyholders; Progressive has about 18,300.
Other automobile insurers settled with the state earlier this year, many paying fines from $5,000 to $40,000 each.
Those companies — including AIG Hawaii Insurance Co., Allstate Group, Hartford, Maryland Casualty Co. (Zurich), RLI, DTRIC, State Farm Group and USAA Group — represent nearly 80 percent of Ha-wai'i's auto insurance market.
There are more than 100 companies licensed to write auto insurance policies in Hawai'i, but only a small percentage actually do, according to state insurance records.
