MASSACHUSETTS INSURERS REACH SETTLEMENT ON MOTOR SURCHARGES

Four Massachusetts motor insurers have reached a settlement with the state attorney general's office to pay restitution to local customers for premium surcharges that were subsequently overturned by the state Board of Appeal. An audit is to determine how much is owed by Premier Insurance, Plymouth Rock Assurance, Pilgrim Insurance and Massachusetts Homeland Insurance. When a Massachusetts resident has a car crash or any event that results in premiums going up, the policyholder has the right to appeal against the insurer's price increase. Since 2003 the Board of Appeal in the State has overturned more than 40,000 price increases. Attorney-General Martha Coakley's office launched an investigation after a customer of MetLife subsidiary Metropolitan P&C Insurance Co had a surcharge overturned, but did not have the surcharge refunded. Ms Coakley said that "our investigation has revealed troubling defects in the policy processing systems used by auto insurance companies", adding that "while we are pleased to have secured the return of these overcharges for Massachusetts consumers, these cases underscore the need for insurance transparency and oversight.".