The state’s division of insurance will return over $1 million to Colorado consumers following the discovery of violations by three insurance companies.

The division’s Market Regulation Team found that Kaiser Permanente was cancelling subscribers’ policies for nonpayment without providing proper notice. There were 383 customers who had their claims reprocessed as a result, and Kaiser paid $725,408 to policyholders and health care providers.

Similarly, Loya Insurance Company and its subsidiary, Young America Insurance Company, “had a number of issues primarily with claim handling,” the division announced after it conducted an audit. The organizations, which provide automobile insurance, paid nearly $400,000 to policyholders, repair shops and other parties whose accidents involved a policyholder from the two companies.

“Making sure that insurance companies are abiding by the rules is absolutely crucial to our job of protecting consumers,” said Colorado Insurance Commissioner Michael Conway. “If the companies are not processing claims correctly, not giving people notices in a timely manner or are simply not following state and federal regulations appropriately, we will step in to make sure that consumers are treated fairly.”

To date, the division has returned $5 million to consumers in 2020. During the pandemic, the division also promulgated regulations regarding insurers’ reimbursements to out-of-network providers treating COVID-19 patients.