Audit finds some insurance complaints linger in system

By Cy Ryan

Tuesday, June 23, 2015 | 4:30 p.m.

CARSON CITY — Some consumer complaints with the state Division of Insurance are not being promptly addressed, with some cases more than five years old, an audit says.

In a report issued Monday, the state Division of Internal Audits said there were 667 investigations opened from 2009 to 2012.

As of April, 29 percent, or 191, were still unresolved. There were 42 investigations of consumer complaints that were still open after more than five years.

The number of unresolved cases “could affect consumer confidence in the division,” according to the report.

Gov. Brian Sandoval said the statute of limitations has run out on some case, meaning the state could not impose fines on companies, if warranted.

Division officials said the backlog was down to 131 as of Monday, and steps have been taken to process complaints faster.

The audit said it reviewed 49 investigative files, and more than half of them “had no or inadequate evidence of investigative activity.”

“Some files contain yellow sticky notes with phone numbers and others had indecipherable notations,” the report said.

Another 58 open cases were assigned to an investigator who left the agency in November 2014 and had not been reassigned, according to the audit. The division said this was due to inadequate staffing or the complaints being considered low priority.

There was a wide gap in the number investigations closed in Northern Nevada compared to Southern Nevada. From 2009 to 2012, investigators in the north closed 383 cases compared to 93 in the south.

There were three investigators in the Reno office and two in Las Vegas. The division now has three investigators in Las Vegas, where 80 percent of consumer complaints are filed.