Massachusetts Attorney General Martha Coakley has setttled a case brought by the state against Employers Reinsurance Group (ERC), a former subsidiary of General Electric, for unlawfully hiking the price of the Boston Water & Sewer Commission’s workers compensation insurance.
According to authorities, ERC violated Massachusetts General Law Chapter 93A, the state’s consumer protection statute, by accepting a broker’s invitation to raise the price of Boston Water & Sewer’s insurance after learning that ERC would not face competition on the account.
Under the terms of the agreement, ERC will return the amount of the overcharge for each year since the violation, plus interest, will pay a $10,000 penalty to the Commonwealth, and will pay $15,000 to the attorney general to cover the costs of investigating the violation.
Additionally, ERC has agreed not to engage in unfair and deceptive bidding practices in the future, according to Coakley.
Source: Massachusetts Attorney General
Topics Commercial Lines Workers' Compensation Business Insurance Massachusetts
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