Updated January 29 at 9:29pm

Four insurance firms settle overcharge claims

BOSTON – Four auto-insurance companies have settled allegations that they overcharged consumers relating to auto-insurance surcharges that were overturned by the Mass. Board of Appeals or otherwise removed from driving records, Attorney General Martha Coakley announced last week. More

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Four insurance firms settle overcharge claims

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BOSTON – Four auto-insurance companies have settled allegations that they overcharged consumers relating to auto-insurance surcharges that were overturned by the Mass. Board of Appeals or otherwise removed from driving records, Attorney General Martha Coakley announced last week.

The settlements were with The Premier Insurance Co. of Massachusetts, Plymouth Rock Assurance Corp., Pilgrim Insurance Co., and Massachusetts Homeland Insurance Co. They mandate audits to determine the amount of restitution owed to Massachusetts consumers and will block surcharge overcharges from reoccurring.

“Our investigation has revealed troubling defects in the policy-processing systems used by auto-insurance companies,” Coakley said in a statement. “While we are pleased to have secured the return of these overcharges for Massachusetts consumers, these cases underscore the need for insurance transparency and oversight.”

Under the terms of the settlements, the four insurance carriers will engage in audits supervised by Coakley’s office of the relevant insurance policies to determine refund amounts and will pay full refunds to consumers going back to 2003, plus 6 percent interest. •

28~01, 040813 Rhode Island & Massachusetts News Briefs, financial services, industries, insurance, Mass. Board of Appeal, 28~01, issue040813export.pbn

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