NU Online News Service, Oct. 13, 3:34 p.m. EDT
Massachusetts Attorney General Martha Coakley said her office reached agreements with five more insurers regarding allegations that they overcharged motorcycle riders for insurance.
In total Ms. Coakley's office has reached similar agreements with a dozen motorcycle insurers that will pay back more than $33.8 million to policyholders and $1.5 million to the state, she said in a statement.
The newest companies to settle are Arbella Mutual Insurance Company, Hanover Insurance Group, OneBeacon Insurance, National Grange Mutual and Norfolk & Dedham Group. They have agreed to return $12.1 million to policyholders, according to the Attorney General's office.
Ms. Coakley said the insurers allegedly used inflated motorcycle values to calculate premiums, resulting in overcharges.
The office launched an investigation after a single complaint from a Lynnfield, Mass., man who noticed that his insurer was charging him the same premium year after year though his 1999 motorcycle depreciated greatly in value, Ms. Coakley said.
Arbella is to refund $6.3 million to customers; Hanover will repay $2.5 million; OneBeacon will return $2.1 million; National Grange will refund about $645,680; and Norfolk & Dedham will pay back about $554,480. The insurers also agreed to pay the state a total of more than $500,000.
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