Insurance Department Levies Fines on Liberty Mutual
March 25, 2009
The Connecticut Department of Insurance has imposed fines of nearly $1
million the Massachusetts-based Liberty Mutual Insurance Companies after
the completion of a.market conduct examination of the corporation. The
company was ordered to pay $296,000 in fines, plus $632,042 in restitution
to approximately 3,600 policyholders.
According to the Connecticut Department of Insurance, the examination
of the company's market conduct revealed several violations to state law,
related to incorrect auto and commercial ratings; licensing/appointments
of agents; licensing of adjusters/appraisers; and instances of improper
In addition, the study found that 3,595 policyholders were overcharged
for premiums on their auto insurance policies, and seven policyholders
were incorrectly charged a surcharge on their auto policies, according
to a statement issued by the state office, resulting in the restitution
"It is imperative that consumers are treated fairly," says Connecticut
insurance commissioner Thomas Sullivan. "I am pleased that my staff
was able to identify these violations, work with the company to provide
restitution, and make a difference for policyholders."
Following is a summary of the fines and their breakdown by company within
the Liberty Mutual group:
|Liberty Mutual Fire Insurance Company, Wisconsin
|Liberty Mutual Insurance Company, Massachusetts
|Liberty Insurance Company, Illinois
|First Liberty Insurance Company, Iowa
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