Auto-insurance carrier Esurance is to pay $154,500 in penalties to the Colorado Division of Insurance for violations identified during an examination last year of its business practices from 2006 through 2008.
The penalty, a $147,000 fine and a $7,500 surcharge for consumer education, is the result of a lengthy appeal and negotiation between both sides that began last September. It was announced Tuesday.
Esurance was cited for not telling customers they could lower their premiums or avoid cancellation or nonrenewal if they excluded a specific driver from their policy, particularly high-risk drivers such as a teenager. Colorado law requires such notification when the driving history or risk factor of a household member affects the rate of the entire household.
