panies will also make payments to the state totaling $510,000.
BOSTON — Massachusetts Attorney General Martha Coakley’s Office announced more settlements with auto insurers regarding allegations that the companies overcharged Bay State consumers for motorcycle insurance.
more than $500,000 and reform their business practices.
The settlements, which should return $9 million to consumers, allege that Metropolitan Property & Casualty Insurance Company, Plymouth Rock Assurance, Pilgrim Insurance Company and the United Services Automobile Association (USAA) used inflated motorcycle values to calculate premiums for many of their Massachusetts customers, resulting in millions of dollars in insurance premium overcharges. Coakley’s office reached similar settlements with Safety Insurance Company, Liberty Mutual, and Quincy Mutual in January. In total, the seven insurers are expected to return $20 million to consumers and pay over $1 million to the Commonwealth.
Under the earlier settlements, Safety
Insurance Company is expected to pay
out $7.2 million, Liberty Mutual will
return $3.1 million and Quincy Mu-
tual will return $800,000 to affected
consumers. The three insurance com-
Coakley’s office is continuing to inves-
tigate other companies on this same
issue. It began its investigation into
motorcycle rating practices in the fall of
2008 after receiving a complaint from
the owners of a 1999 Harley Davidson
Road King Classic. The owners alleged
that Safety had valued their 1999 Har-
ley Davidson Road King Classic at
$20,000 in each year between 2003
and 2008, but had offered the owners
“We are pleased that these insurance companies will return $9 million in insurance premium overcharges to affected motorcycle owners,” said Coakley. “While we appreciate that these companies cooperated with our investigation, it remains troubling that they systemically overcharged their customers on such a large scale. Our office will continue to investigate other companies engaged in this type of behavior. In order to thwart and correct practices like this, consumers and regulators need transparency and access to information in the auto insurance rating process.”
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Under the terms of the settlements, filed this week in Suffolk Superior Court, it is anticipated that Metropolitan will return $3.5 million, Plymouth Rock Assurance and Pilgrim Insurance will collectively return $3.6 million, and USAA will return $2.3 million to policyholders.
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Tim deRosa, President
tderosa@platinumpartnersma.com • (978) 548-3790
The insurance companies will also make payments to the state totaling
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