Connecticut Orders Liberty Mutual to Pay $930K

March 25, 2009

The Connecticut Insurance Department has ordered Boston-based Liberty Mutual Insurance Cos. to pay nearly $930,000 in fines and restitution for overcharging thousands of customers, settling claims incorrectly and violating state laws in the appointment and licensing of agents.

The total is among the largest amount ordered by state regulators, according to the insurance department.

The fines and restitution were spread among five subsidiaries of Liberty Mutual. Regulators discovered the discrepancies and ordered the fines after completing a market conduct examination.

The restitution, which amounted to over $630,000, was returned to more than 3,600 auto insurance customers.

Liberty Mutual has pledged to review its practices and procedures in the Nutmeg State.

Source: Connecticut Insurance Department

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