Updated September 4 at 10:04am

Insurance company will pay restitution in Mass.

BOSTON – An auto-insurance company will pay close to $345,000 to consumers and $50,000 to the commonwealth as the result of an investigation alleging that policyholders with clean driving records were subject to improper “nonrenewal,” Attorney General Martha Coakley announced last week.

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Insurance company will pay restitution in Mass.

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BOSTON – An auto-insurance company will pay close to $345,000 to consumers and $50,000 to the commonwealth as the result of an investigation alleging that policyholders with clean driving records were subject to improper “nonrenewal,” Attorney General Martha Coakley announced last week.

In 2010, the AG’s office began investigating Metropolitan Property and Casualty Insurance Co.’s termination of more than 2,600 Massachusetts automobile-insurance policies in violation of Commonwealth Automobile Reinsurers rules that prohibited the nonrenewal of “clean-in-three” automobile-insurance policies. Under the “clean-in-three” rule, insurers cannot nonrenew the policies of drivers who have not had an accident or traffic violation in the past three years.

Under the terms of the assurance of discontinuance, filed in Suffolk Superior Court, Met will pay 56 consumers a total of $35,000 after their policies were allegedly terminated in violation of state law, and were unfairly assigned to the state’s more expensive residual market – the Massachusetts Automobile Insurance Plan (MAIP). The company will also pay an approximate total of $310,000 to 2,583 policyholders who were wrongfully nonrenewed but found alternative insurance in the voluntary market. •

27~26, 100112 Rhode Island & Massachusetts News Briefs, government, financial services, law, insurance, , 27~26, issue100112export.pbn

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