NU Online News Service, May 13, 3:13 p.m. EST

American Family Mutual Insurance will pay 5,000 of its Arizona policyholders nearly $1.2 million after making an error involving repayment of taxes charged to contractors.

The Arizona Department of Insurance says a roofing contractor last December contacted regulators to report American Family was not including a tax building contractors must pay to the state—a Transaction Privilege Tax, which is normally included as part of an insurance claim.

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