Ohio-based Auto Insurance Company Ordered
To Cease and Desist Illegal Practices

Springfield – Director of Insurance, Michael T. McRaith, has issued a Cease and Desist Order against the Safe Auto Insurance Company of Columbus Ohio.  The Order charges that Safe Auto’s misconduct caused some of its Illinois customers to lose their driving privileges.

Illinois law requires some drivers to file proof of financial responsibility with the Secretary of State.  With respect to these policyholders, the Order charges that Safe Auto has been improperly notifying the Illinois Secretary of State of motor vehicle insurance policy cancellations for nonpayment of premium even though the policyholder is not delinquent. 

The practice has resulted in the suspensions of the driver’s licenses, and vehicle registrations of policyholders who have properly paid their premiums.  The Order imposes several sanctions against the Safe Auto Insurance Company including requirements for the company to:

• Immediately cease and desist its improper notification practice;
• File a remediation plan with the Director within 15 days; and
• Within 10 days of approval of the policyholder notice, send written notification to affected policyholders that Safe Auto will pay expenses attributable to the improper filings.

The Order also schedules a hearing on the matter for April 7, 2006, to be held at the offices of the Department of Financial and Professional Regulation, Division of Insurance in Springfield, Illinois. A copy of the Cease and Desist order is available here.