Liberty Mutual has agreed to repay $7.7 million to more than 86,000 policyholders for auto and homeowners insurance policies for allegedly violating several state insurance regulation laws.
In a consent order filed with the Minnesota Department of Commerce, Liberty Mutual is accused of failing to offer the minimum antitheft protection device discount on auto insurance. The company has refunded or credited over $2.27 million to 53,604 current and former policyholders, averaging $42.41 per policyholder.
Liberty Mutual allegedly used an applicant’s status as a residential tenant in offering or establishing multi-policy discounts in violation of state law. The company has started refunding/crediting 7,700 current and former policyholders an estimated $2.7 million, averaging $350.65 per policyholder.
Liberty Mutual also allegedly applied an automated auto rate increase in violation of state law. Liberty Mutual will issue $2.1 million in credits and $670,000 in refunds to about 11,800 current policyholders (average $177.96 each) and 8,700 former policyholders (average $77.01 each).
Liberty Mutual has 360 days from the date of the consent order to refund, credit, or reduce the premium of all impacted policyholders in accordance with the remediation plan approved by the Minnesota Commerce Commissioner, Grace Arnold. The consent order was signed Oct. 17.
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