Connecticut 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 claim settlements.

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 charges.

"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:

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