NU Online News Service, June 29, 1:41 p.m. EDT
.jpg "Liberty Mutual Growth Rate, 2006-2008")
Two Liberty Mutual subsidiaries in North Carolina have issued more than $1 million in refunds to policyholders the companies overcharged, says Insurance Commissioner Wayne Goodwin.
Goodwin says Safeco Insurance Co. of America and American States Preferred Insurance Co. gave the refunds to more than 11,200 automobile, homeowners' and dwelling fire policyholders.
A market-conduct exam by Goodwin's office, and self-audits by the companies, revealed problems with Safeco and American States' ratings systems between 2006-2008.
As a result, it was determined that 2,462 auto policies were overcharged. About $631,000 was refunded. Nearly $363,500 was given back to 8,257 overcharged homeowners, and about $55,535 was refunded to nearly 500 dwelling-fire business policies.
The State Department of Insurance says Safeco and American States have submitted a corrective-action plan and the department plans a follow-up examination to make sure the companies have implemented the plan.
According to Highline Data, Liberty Mutual Insurance Group is the eighth largest writer of personal-lines insurance in North Carolina, with a 4 percent market share.
Highline Data is a part of Summit Business Media, which also owns National Underwriter.
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