Praeger's office saves consumers $15 million in 2007

Kansas Insurance Commissioner Sandy Praeger's office helped thousands of Kansas consumers settle disputes with their insurance companies in 2007, recovering nearly $15.1 million in insurance claims for policyholders, a statement from Praeger's office said Friday.

"This record-setting amount illustrates the hard work of our Consumer Assistance representatives," Praeger said. "Kansans can be confident their insurance department is working to resolve disputes between companies and consumers in a fair and timely manner."

The insurance department's second-highest recovery amount occurred in 2005, when the department recovered $13.6 million for Kansas consumers. The department also handled 4,594 complaints and 1,700 insurance inquiries that year.

Recoveries are funds returned to policyholders through settlement of claims disputes with insurance companies from inquiries and formal complaints filed with the department. These funds are above and beyond what companies had offered consumers, a statement from the Kansas Insurance Department said.

Though the department recovered a record amount in 2007, it also has handled fewer complaints and inquiries each year since 2004. Praeger points to this trend as evidence that consumers are more educated and companies are more mindful about how claims are handled, the statement said.

In 2004, the Kansas Insurance Department recovered $11.1 million, received 5,039 complaints and 2,044 inquiries. In 2006, the department recovered $11.1 million, fielded 4,529 complaints and 1,642 insurance inquiries.

Praeger said the EF-5 tornado that destroyed 95 percent of Greensburg on May 4, 2007, resulted in fewer than 10 complaints, and many of those cases involved policyholders who didn't understand their policies or were underinsured.

Consumers with insurance questions or concerns are encouraged to call the Consumer Assistance Hotline at (800) 432-2484. Complaints or inquiries can be made in writing to the Kansas Insurance Department, 420 SW 9th St., Topeka, Kan., 66612, or online at www.ksinsurance.org.

The Kansas Insurance Department also publishes several booklets and pamphlets to help consumers make informed decisions about their insurance needs. Publications can be downloaded or requested online. Requests may also be made by calling the hotline.