Kansas City, Mo. - The top three reasons consumers filed formal complaints against their insurance companies in 2005 were delays, denials and unsatisfactory settlement offers, according to data collected by the National Association of Insurance Commissioners (NAIC).Following these claims handling issues, consumers complained most about policy cancellations and premiums/insurance rating issues. That complaint pattern has remained relatively consistent during the past four years. A total of 199,639 complaints were filed by consumers in 2005, a 22.5% decrease from 2004.

The NAIC maintains a centralized electronic Complaint Database System (CDS), through which states voluntarily report 'closed' complaints. (A closed complaint is a complaint that has been investigated and resolved to the satisfaction of the state or jurisdiction in which it is filed.) The CDS, first established in 1990, was significantly expanded in 1998 and now houses 2.2 million complaints.

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