October 26, 2008
Has Illinois forgiven Safe Auto
I came across an article from back in 2006 that I felt deserved resurfacing. The article stated that Michael T. McRaith, Springfield’s Director of Insurance has issued a Cease and Desist Order against the Safe Auto Insurance Company. According to Illinois law, some drivers need to file proof of financial responsibility with the Sec. of state. According to the State, Safe Auto has been improperly informing the Secretary of State of Motor Vehicle on policy cancellations even the the Policyholder is not delinquent. I could imagine the frustration this could cause some Illinois residents. This issue has resulted in license suspensions causing loss of driving privileges to those who don’t deserve it.
Several Sanctions have been filed against Safe Auto requiring them 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 a written notification to policyholders who have been affected stating that Safe Auto will pay expenses attributable to the improper filings.
You can read the news provided by the Illinois Department of Financial and Professional Regulations