Connecticut Fines Vermont Mutual $144K

The State of Connecticut has fined Vermont Mutual Insurance Co. $144,000 for reported violations involving licensing, appointment, and commissions of agents who sold the company's policies. The company said it will assess its procedures and has 90 days to report back to the Connecticut Insurance Department.

The fine comes from a "market conduct" survey completed by the Montpelier-based company at the request of the insurance department. The survey covers company business in the state for 2006.

According to the company's survey, 104 agents were not properly appointed to sell its insurance, and 15 agents did not have proper licensing in Connecticut.

The state's insurance department alleges that there were 72 policies involving negotiated agent commissions that fell short of Connecticut requirements.