Liberty Mutual Companies to Pay Nearly $1 Million in Fines and Restitution in Connecticut - BodyShop Business
Connect with us

Uncategorized

Close Sidebar Panel Open Sidebar Panel

Uncategorized

Liberty Mutual Companies to Pay Nearly $1 Million in Fines and Restitution in Connecticut

Advertisement

The Connecticut Department of Insurance (DOI) ordered Massachusetts-based Liberty Mutual Insurance Companies to pay $296,000 in fines plus $632,042 in restitution to approximately 3,600 policyholders after a market conduct exam revealed violations to state law and incorrect charges on auto policies.

Click Here to Read More
Advertisement

“It is imperative that consumers are treated fairly,” said Insurance Commissioner Thomas R. Sullivan. “I am pleased that my staff was able to identify these violations, work with the company to provide restitution, and make a difference for policyholders.”

The market conduct exam revealed various violations to Connecticut state law primarily related to incorrect automobile and commercial rating, licensing and appointments of agents, licensing of adjusters and appraisers, and instances of improper claim settlements. Fines for all violations totaled $296,000.

In addition to the fines, Sullivan ordered the Liberty Mutual Companies to pay $632,042 in restitution.  The majority of the restitution, $628,875, was returned to 3,595 policyholders who were overcharged for premiums on their auto insurance policies. The remaining restitution went to seven policyholders who were incorrectly charged a surcharge on their private passenger automobile policies.

Advertisement

Violations and fines varied by company:

• Liberty Mutual Fire Insurance Company, Wisconsin – $158,500 in fines; $573,397 in restitution

• Liberty Mutual Insurance Company, Massachusetts – $10,000 in fines

• Liberty Insurance Company, Illinois – $118,500 in fines; $22,332 in restitution

• First Liberty Insurance Company, Iowa – $9,000 in fines; $36,313 in restitution

The company agreed to perform a complete review of its practices and procedures to ensure the areas of concern comply with Connecticut law, according to the DOI.

Advertisement
Click to comment
Connect
BodyShop Business