NU Online News Service, March 24, 10:51 a.m. EDT
Clarendon National Insurance Company has paid a $360,000 fine for overcharging auto insurance policyholders and refunded customers approximately $992,000, the New York State Insurance Department said.
According to the department, Clarendon improperly imposed a 30 percent rate hike on 1,227 New York automobile insurance policyholders in April 2006. Most of the policyholders, the department said, live in New York City and on Long Island.
The fine and refunds resulted from a departmental review of Clarendon conducted after the company requested permission to withdraw from the private passenger automobile insurance market in New York State.
A spokesman for Clarendon said the company would not comment.
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