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AAA confuses policy holders
Saturday, February 20, 1999 By Patricia Sabatini, Post-Gazette Staff Writer
West Penn AAA Insurance Agency's decision to stop writing policies for Keystone Insurance Co. has caused some confusion for Keystone policy holders in the region.
West Penn, which is an independent agent for about 25 insurance companies, ended its relationship with Keystone Jan. 1 because of "concerns" over rates and service, according to West Penn's chief operating officer, Robert Irwin.
Last month, West Penn began sending letters to several thousand members who had car or home owner's insurance with Keystone recommending they switch carriers to Travelers Property and Casualty Co.
The transition has hit a few snags, however.
Policy holders confused by the letters, which didn't spell out the reason for the change, have been calling West Penn wondering what's going on. About two dozen customers also have called the Pennsylvania Insurance Department asking for an explanation.
And at least one customer has filed a written complaint with the insurance department, upset that he was automatically issued a new auto insurance policy with Travelers without ever authorizing the change.
Charles Delehanty, 60, of Bellevue, said that just a few days after getting the letter from West Penn recommending the switch, a new policy from Travelers arrived in his mailbox.
Delehanty said he's angry that West Penn "acted without my knowledge" before he had a chance to review his options. And he's "irritated" with what he considers to be high-pressure tactics to get him to sign up with Travelers.
He said when he called West Penn to complain, an agent advised him to pay the new premium, warning that his coverage could lapse, even though his Keystone policy doesn't expire until the end of March.
Delehanty also disputed the letter's contention that Travelers was the best buy. He said the annual premium on the Traveler's policy was $80 more for the same coverage he had with Keystone.
West Penn's Irwin said Delehanty shouldn't have been issued the policy without having a chance to request one. "In this case, it was a mistake," he said.
West Penn will continue to send notification letters to Keystone policy holders over the coming months as their policies come up for renewal. But Irwin said West Penn and Travelers have worked out a new procedure to prevent another mix-up.
Travelers will now allow an additional two weeks for customers to reply to the letters before issuing a new policy. The letters also will state more clearly that customers can decline coverage through Travelers and choose another carrier, or even stick with Keystone by getting another agent.
Still, if Travelers doesn't hear from a customer, it will automatically issue a policy "to make certain there are no gaps in anyone's coverage," Travelers spokesman Dennis Schain said.
Insurance Department spokeswoman Angela Yarborough said the agency was reviewing Delehanty's complaint, but said she didn't believe any regulations had been broken.
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