Canadian insurer fined $20,000

The Traders General Insurance Co. has recently been charged with a penalty of $20,000 for failing to apply October’s 5% auto insurance premium rebate and reduction to two consumer programs. As of May 2005, the Company had still not issued rebates due Jan. 31 nor applied the 5% premium reductions required after Oct. 1, 2004.The Alberta Office of the Superintendent of Insurance has been contacted by consumers who claim reductions are not reflected in their policies and no rebates delivered. Further inquiry uncovered that approximately 1,600 more policies were affected. Acting in accordance with the rebate and reduction mandate, Traders is now issuing rebates, reducing premiums and establishing checks in its systems. Affected consumers are receiving the reductions automatically, with explanations.The superintendent’s office reports it will audit the company within 60 days.