Finances
Liberty Mutual to Repay $7.7 Million to Over 86,000 Policyholders for Alleged Violations of State Insurance coverage Rules
Liberty Mutual has agreed to repay $7.7 million to greater than 86,000 policyholders for auto and owners insurance coverage insurance policies for allegedly violating a number of state insurance coverage regulation legal guidelines.
In a consent order filed with the Minnesota Division of Commerce, Liberty Mutual is accused of failing to supply the minimal antitheft safety system low cost on auto insurance coverage. The corporate. Liberty Mutual has refunded/credited over $2.27 million to 53,604 present and former policyholders, averaging $42.41 per policyholder.
Liberty Mutual allegedly used an applicant’s standing as a residential tenant in providing or establishing multi-policy reductions in violation of state legislation. The corporate. has began refunding/crediting 7,700 present and former policyholders an estimated $2.7 million, averaging $350.65 per policyholder.
Liberty Mutual additionally allegedly utilized an automatic auto fee enhance in violate of state legislation. Liberty Mutual will concern $2.1 million in credit and $670,000 in refunds to about 11,800 present policyholders (common $177.96 every) and eight,700 former policyholders (common $77.01 every).
The consent order features a $150,000 which shall be stayed (not paid) so long as Liberty Mutual absolutely complies with the phrases of the consent order, the Minnesota Commerce Division mentioned.
Liberty Mutual has 360 days from the date of the consent order to refund, credit score, or scale back the premium of all impacted policyholders in accordance with the remediation plan permitted by the Minnesota Commerce Commissioner, Grace Arnold. The consent order was signed Oct. 17.
Subjects
Legislation
Minnesota
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