NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced a $3.75 million settlement Tuesday with an insurer that allegedly overcharged on college student health plans.

Markel Insurance Company allegedly charged close to $3 million in overcharges to approximately 22,000 students by failing to meet legal requirements for minimum loss ratios on health insurance, college accident insurance and sports accident insurance plans. Markel also allegedly paid improper broker bonuses, creating an incentive for brokers to keep loss ratios under the legal minimum.

"With the high cost of college already straining family finances across New York, students and parents shouldn't have to worry about paying even more for health insurance," Schneiderman said. "This settlement sends a clear message: Insurance companies, like everyone else, must play by the rules and work together with government to bring down the cost of healthcare."

Schneiderman's office worked with the New York State Department of Financial Services on the inquiry and the finalization of the settlement. Under the terms of the agreement, Markel will pay more than $2.75 million in refunds to colleges and students and a combined penalty of $990,000 that will be split evenly between Schneiderman's office and the DFS.

Markel is no longer offering student health, accident insurance and sports accident insurance plans in the state of New York.

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