The DOI negotiated this agreement with Geico following a market conduct examination of Geico's practices since the company began offering private passenger automobile insurance to Massachusetts drivers in May 2009. The DOI said that its examination specifically identified Geico's inconsistency in reporting claim information and providing operators proper notice of at-fault accident determinations and their rights to appeal those determinations to the DOI's board of appeal as areas requiring a change in business practices. Geico will notify individuals affected by these actions, including consumers who are no longer insured by Geico, within 60 days.

The settlement requires Geico to amend claim information reporting, implement new business practices to ensure operators determined at-fault receive notice of that determination and their rights to appeal, and warrant that data reported to the Merit Rating Board is effective and timely. Geico will be subject to ongoing monitoring and a re-examination in the next two years, after which the DOI will levy or rescind the second fine.

Under the terms of the agreement, Geico also must:

• Properly report past claim information to the Merit Rating Board and other insurance carriers for claims that occurred between May 18, 2009 and June 1, 2013.
• Provide notice of at-fault accident determinations and the right to appeal those determinations to operators not previously notified of Geico's at-fault accident determinations between May 18, 2009 and June 1, 2013. Operators affected by this inconsistency in Geico's prior business practices will be allowed to appeal those determinations to the DOI's board of appeal.  Consumers who elect to appeal will have their $50 filing fee reimbursed by Geico.
• Implement new business practices to ensure that operators determined to be at-fault for accidents receive timely notice of the determination as well as an explanation of their rights to appeal the determination.
• Routinely audit the effectiveness of new business practices designed to prevent errors and report the results to the DOI over the next two years.

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