ST PAUL, Minn. — One of the largest insurance companies in the country has agreed to pay millions in refunds, credits and discounts to Minnesota policyholders after state officials alleged the company violated regulatory laws.
The Minnesota Department of Commerce's Enforcement Division launched an investigation into Liberty Mutual Insurance Company over several alleged violations, including failing to offer the minimum antitheft protection device discount for auto insurance; using an applicant's status as a renter in offering multi-policy discounts in bundling home and auto policies; and applying an automated rate increase in relation to auto insurance.
Liberty Mutual will now pay out $7.7 million to more than 86,000 policy holders in Minnesota.
“When consumers pay premiums for insurance policies, they are protected by state law to ensure they get what they pay for,” Commerce Commissioner Grace Arnold said in a statement. “This case demonstrates Commerce’s work to protect consumers and also ensure a fair and equitable marketplace.”
While the Commerce Department says Liberty Mutual has already started issuing refunds and credits to those affected, the consent order between the two bodies also imposes a stayed civil penalty of $150,000 on the insurance company, which will not need to be paid should Liberty Mutual comply with the order's full terms.
To read the full consent order between Minnesota's Commerce Department and Liberty Mutual, click here.
To file a complaint about your insurance company, visit the department's website.
WATCH MORE ON KARE 11+
Download the free KARE 11+ app for Roku, Fire TV, Apple TV and other smart TV platforms to watch more from KARE 11 anytime! The KARE 11+ app includes live streams of all of KARE 11's newscasts. You'll also find on-demand replays of newscasts; the latest from KARE 11 Investigates, Breaking the News and the Land of 10,000 Stories; exclusive programs like Verify and HeartThreads; and Minnesota sports talk from our partners at Locked On Minnesota.
- Add KARE 11+ on Roku here or by searching for KARE 11 in the Roku Channel Store.
- Add KARE 11+ on Fire TV here or by searching for KARE 11 in the Amazon App Store.
- Learn more about the KARE 11+ app for Apple TV in the Apple App Store.
- Learn more about KARE 11+ here.
Watch more local news:
Watch the latest local news from the Twin Cities and across Minnesota in our YouTube playlist:
