FOR IMMEDIATE RELEASE
MMA Alert – Met P&C Will Reimburse Drivers Over Alleged Auto Insurance Overcharges
16 January 2013
The Massachusetts Motorcycle Association (MMA) has been informed by the Massachusetts Attorney General’s Office (AGO) that they have reached a settlement with Metropolitan Property & Casualty Insurance Company (Met P&C) with regard to allegations that it failed to refund surcharge premiums to insurance policyholders after those surcharges were eliminated by the Commonwealth’s Board of Appeal. This settlement effects all motor vehicle insurance carriers, not just motorcyclists, but follows a line of actions similar to those which have resulted in nearly $43 million being returned to Motorcyclists thus far.
Previous activities by the AGO were targeted at overcharges by the Insurance Carriers in the Comprehensive and Collision Premiums of Motorcycle Policies because the Carriers were not accurately applying vehicle depreciation. The settlement with Met P&C announced today deals with policy premium overcharges caused by surcharges that should have been removed; today's settlement also applies to all motor vehicle insurance policies, not just motorcycles.
The AGO investigated Met P&C’s surcharge practices after a compliant from a Massachusetts Consumer indicated their surcharge had not been removed from their premium despite having been vacated by the Commonwealth’s Board of Appeal in 2010. Met P&C cooperated with the AGO which found that Met P&C had failed to refund more than $700 in surcharge premiums. The Commonwealth’s Board of Appeal is an independent board that reviews at-fault accident determinations made by insurance companies. Once a surcharge is vacated by the Board of Appeal, insurance companies are required by law to refund the surcharge premium to the policyholder.
Met P&C has agreed to engage in a supervised audit of the relevant insurance policies to determine refund amounts and provide those refunds plus 6% interest to the consumer as well as penalties to the Commonwealth. The AGO is now investigating additional Insurance Carriers with the assistance of the Merit Rating Board.
The MMA would like its membership and all riders to be aware of this issue and check their insurance policies. If you believe you are unfairly being charged a premium, regardless of your insurance carrier, you are encouraged to contact the AGO directly, or contactMyRefund@MassMotorcycle.org for more information or assistance.
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