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Insurance Carrier: Hartford Casualty Insurance Company
State: Illinois

Consumer Complaint:

We sent 50% of the total premium for our company for W/C, Business LIability and Business auto, company applied all to WC and now cancelling our business libility for non payment although the check noted the breakdown for everything. For 3 months we thought we had insurance per policy on auto, business and workers comp, but find out we have nothing but they have our money and refuse to deal with us direct, tell us "go through the broker" who is not getting much further than us. We have until May 5 to pay them their Premium, which we paid through JUNE, Agent is looking for another company to insure our small business. Do they have the right to do this and then ignore us and cancel us at will ?

Insurance Expert Answer:

I am not sure what happened here. If your policy period was a year and you have the option to pay quarterly and sent half a year's premium in, they should have applied the premium across all policy lines, giving you 6 months coverage for all lines and not 12 months for 1 line and 0 for the rest. If they didn't they should readjust it. If the WC premium included some past due amounts (there frequently are adjustments and retroactive premium due on WC) that's a different story.

If you got a bill for 30 days coverage and paid half, the insurance company need not cover you for 15 days on everything, but instead could apply the whole premium for one of the coverages (WC) and lapse the others.

Write a letter to the CEO of the Hartford -- don't waste time with the 800 number -- and ask that he help straighten it out ASAP. Get the broker to deal with it too, and report it to the IL and CT insurance departments.