The State : Insurers’ Rate Hikes Queried

The state Department of Insurance said that 10 auto insurers have failed to justify rate increases exceeding 10% this year and gave them 10 days to provide more information. The companies named were Fireman’s Fund, Cigna, Coastal, Century-National, Golden Eagle, National Service, Commercial Union, Transport, Preferred Risk Mutual and Midwest Mutual. Department officials refused to discuss specifics, or to say how long it will take to decide whether fines should be levied. Last summer, Insurance Commissioner Roxani Gillespie said that all companies instituting rate increases of more than 10% would have to justify them to the department.