GMAC Insurance has agreed to pay a $50,000 fine to settle charges that the company sent deceptive direct mail advertising to 22,000 New Hampshire residents last year.
The state insurance commissioner said the mailing contained several deceptive statements, including one that promised people lower rates because they lived in neighborhoods where fewer accidents occur.
Insurance Department investigators said the company could not substantiate that claim.
The company also is sending letters to all residents who either responded to the mailing or filed a complaint about it. And it agreed to set up a system to review future advertising for accuracy.
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