NU Online News Service, June 29, 1:41 p.m.EDT

Two Liberty Mutualsubsidiaries in North Carolina have issued more than $1 million inrefunds to policyholders the companies overcharged, says InsuranceCommissioner Wayne Goodwin.

Goodwin says Safeco Insurance Co. of America and American StatesPreferred Insurance Co. gave the refunds to more than 11,200automobile, homeowners' and dwelling fire policyholders.

A market-conduct exam by Goodwin's office, and self-audits bythe companies, revealed problems with Safeco and American States'ratings systems between 2006-2008.

As a result, it was determined that 2,462 auto policies wereovercharged. About $631,000 was refunded. Nearly $363,500 was givenback to 8,257 overcharged homeowners, and about $55,535 wasrefunded to nearly 500 dwelling-fire business policies.

The State Department of Insurance says Safeco and AmericanStates have submitted a corrective-action plan and the departmentplans a follow-up examination to make sure the companies haveimplemented the plan.

According to HighlineData, Liberty Mutual Insurance Group is the eighth largestwriter of personal-lines insurance in North Carolina, with a 4percent market share.

Highline Data is a part of Summit Business Media, which alsoowns National Underwriter.