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Press Release

October 16, 2018

Contact: Richard Loconte, 212-709-1691

DFS SUPERINTENDENT VULLO ANNOUNCES $5.78 MILLION IN RESTITUTION TO SENTINEL INSURANCE AND SELECTIVE INSURANCE NEW YORK POLICYHOLDERS

Sentinel and Selective to pay $700,000 in fines For New York Insurance Law violations

Sentinel provides full restitution, including interest, of $1.6 million to policyholders who were overcharged for a required New York fire fee between October 2009 and December 2015

Selective provides full restitution, including interest, of $4.1 million, to policyholders who were overcharged improper rates for property and casualty coverage from January 2003 through February 2016

Financial Services Superintendent Maria T. Vullo today announced that the New York Department of Financial Services (DFS) has entered into consent orders with Sentinel Insurance Company and Selective Insurance Companies to provide more than $5.78 million, including interest, in restitution to New York policyholders who were overcharged in violation of New York Insurance Law.

“DFS will not tolerate violations of insurance law that impact New York policyholders’ pocketbooks,” said Superintendent Vullo.  “Insurers have an obligation to follow New York law and ensure that policyholders are paying DFS-approved rates and that insurers correct statutorily-required charges.  We appreciate the cooperation of both Sentinel and Selective in responding appropriately and resolving their respective matters.”

Between October 2009 and December 2015, Sentinel charged policyholders a 2% fire fee rate in lieu of the statutory New York fire fee rate of 1.25% on premiums covering the peril of fire on property or risks in New York State while reporting and paying the correct fee amounts to the Department.  In addition to the consumer restitution of $1,666,596, the consent order also requires Sentinel to pay a $150,000 fine to DFS.

Selective is providing $4,116,268 in restitution, including interest, to New York policyholders who were overcharged as a result of Selective assessing consumers unapproved rates between January 2003 and February 2016. Selective has also paid fines to DFS totaling $550,000.

Both Sentinel and Selective have sufficiently demonstrated to DFS that they have implemented the necessary actions to prevent recurrences of the violations and are now in compliance with the applicable sections of New York Insurance Law that the companies had violated.

Copies of the respective consent orders can be found here and here.

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