網頁

Friday, April 27, 2018

LIBERTY MUTUAL TO PAY $50,000 OVER ALLEGATIONS IT IMPROPERLY CANCELLED HOMEOWNERS INSURANCE POLICIES

LIBERTY MUTUAL TO PAY $50,000 OVER ALLEGATIONS IT IMPROPERLY CANCELLED HOMEOWNERS INSURANCE POLICIES
Payment Will Provide Relief to Affected Homeowners

            BOSTON – Liberty Mutual Insurance Group Inc. has agreed to pay $50,000 to resolve allegations that it improperly cancelled approximately 200 homeowners insurance policies, Attorney General Maura Healey announced today.

The assurance of discontinuance, filed today in Suffolk Superior Court, will settle allegations that Liberty Mutual has been cancelling homeowners insurance policies in violation of state law since at least 2012. The $50,000 will be used to provide relief to homeowners who had to purchase more expensive policies as a result of Liberty Mutual’s actions.

            Massachusetts law prohibits insurance companies from cancelling homeowners insurance policies after they have been in effect for 60 days minus a few exceptions, such as failure of the insured to pay their premium or fraud or material misrepresentation in obtaining the policy by the insured. According to the settlement, Liberty Mutual cancelled approximately 200 policies based on the fraud and misrepresentation exception even though it lacked required information to make that determination.

            The AG’s Office previously reached a settlement with the Massachusetts Property Insurance Underwriting Association, or “FAIR Plan,” regarding allegations that it was cancelling hundreds of homeowners insurance policies per year in violation of state law.

This matter was handled by Assistant Attorney General Lydia French of the Attorney General’s Insurance and Financial Services Division.