Overall, some $42.8 million has been returned to consumers in the Commonwealth
Attorney General Martha Coakley issued an announcement yesterday stating that since 2010, 17 insurance companies have entered into settlement agreements with her office returning more than $42.8 million to motorcycle owners in Massachusetts.
“We began our industry-wide investigation into motorcycle insurance based on a single consumer complaint,” AG Coakley said. “With these insurance companies having now completed the refund process, we are proud that our investigation has resulted in the return of more than $42.8 million to Massachusetts motorcycle owners since 2010.”
The industry-wide investigation begun by the Attorney General found that during the time period between 2003 and 2008 each of the 17 insurers had been calculating their insureds motorcycle premiums using inflated valuations instead of the actual worth of the vehicles. As a result, in the case of the original complaint, the consumer was overcharged for a policy covering his 1999 Road King Classic by some $1,500 dollars.
In the latest round of refunds mailed to affected insureds, the Attorney General announced that Encompass sent out $1.9 million in payments, while Amica sent out $837,384 and Main Street mailed out $17,833. A total f 10,137 checks from the carriers have been sent to their affected policyholders in the last two weeks. The average refund amount to each consumer is approximately $280 dollars.
How agents can help their insureds determine whether or not they deserve a refund
Agents might want to post something about this issue to make sure that if any of their clients who might be due a refund, take advantage of it. Nothing builds better goodwill then helping your client claim a windfall. That being said, the following snippet from the AG’s announcement spells out the details on what a potential claimant should do:
In order to be eligible for a refund under the Attorney General’s settlements, a consumer must have purchased comprehensive and/or collision insurance coverage for a motorcycle on or after Jan. 1, 2002 and that motorcycle must have been overvalued by the insurance company for the purposes of calculating premiums. Consumers who think they may be entitled to a refund can use the Attorney General’s Motorcycle Insurance Refund Lookup Webpage at www.motorcycle.ago.state.ma.us to find out whether they are eligible, and if so, how much they are entitled to receive. Consumers who have questions about the settlements or their refund may visit the Attorney General’s FAQ about the motorcycle insurance settlements or call the Attorney General’s Insurance & Financial Services Division at 1-888-830-6277.
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