Posted on 25 Mar 2009
Boston-based Liberty Mutual Insurance Cos. was ordered by the Connecticut Insurance Department to pay approximately $930,000 in restitution and fines for overcharging thousands of customers, improperly settling claims, and violating state laws in the appointment and licensing of agents. Restitution was returned to more than 3,600 auto insurance customers.
According to the insurance department, the total is among the largest amount ordered by state regulators. The fines and restitution were distributed among five Liberty Mutual subsidaries. After completing a market conduct examination, regulators discovered the discrepancies and ordered the fines.
Liberty Mutual has stated that it will be reviewing its practices and procedures in the state.