NEW YORK (WWTI) — The New York State Department of Financial Services has announced a settlement with a mobile insurance provider.
Superintendent of Financial Services Linda A. Lacewell announced on August 20 that The Signal, LP, an Assurant Company, has been fined $2.8 million following inadequate consumer disclosures.
The global provider provided these disclosures for insurance offerings for mobile phones, tablets, and other wireless communication equipment and improperly bundling wireless insurance with the sale of a service contract or other non-insurance benefit. Assurant also offered identity theft insurance underwritten by an unauthorized insurer.
“Licensees must make proper disclosures so that New York consumers can effectively assess the offering,” said Superintendent Lacewell. “Assurant failed to provide these disclosures while also offering a product that included unauthorized insurance. These types of failings can cause serious harm to consumers. DFS will continue to protect New Yorkers against unauthorized insurance and help ensure that consumers receive the information they need to make an informed choice.”
According to DFS, the company provided brochures that failed to properly disclose how Assurant was compensated and how consumers could receive a premium discount. Assurant also bundled wireless insurance with the sale of a service contract or other non-insurance benefit.
Violations continued after DFS issued guidance that addressed shortcomings.
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