Insurance Company Ordered To Pay Millions Back To MN Consumers

DO YOU TRUST YOUR INSURANCE COMPANY?

Have you often wondered if your car or home insurance company is really giving you everything they promise they are? There are serious consequences for insurance companies that make promises they don't keep. If you've trusted your insurance to an Emu, it may literally pay off for you in the long run; but not because of great coverage. Liberty Mutual is having to pay policyholders millions of dollars due to a recent investigation into the company.

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LIBERTY MUTUAL ORDERED TO PAY POLICYHOLDERS

According to Fox9.com, The Minnesota Department of Commerce said that Liberty Mutual Insurance Company agreed to pay over 7 million dollars to approximately 86,500 policyholders as a part of a consent order.

The allegations are lengthy and include the following:

• Failure to provide the minimum antitheft protection device discount for auto insurance.
• Violated a state law by applying an automated rate increase.
• Use an applicant's status as a residential tenant in offering multi-policy discounts for bundling auto and homeowners insurance.

Commerce Commissioner Grace Arnold said, "When consumers pay premiums for insurance policies, they are protected by state law to ensure they get what they pay for, This case demonstrates Commerce’s work to protect consumers and also ensure a fair and equitable marketplace."

Consumers of Liberty Mutual won't have to wait long for their refunds either. Liberty Mutual has 360 days to offer a refund, reduce the premium, or credit the consumer, and if they don't comply within the designated time frame, they will have to pay an additional $150,000 penalty fee.