BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Aug. 11 that American Security Insurance Company will pay $6.3 million in refunds to more than 4,500 homeowners after allegations of improper charges.
According to Healey’s office, these homeowners were charged for duplicative coverage. This duplicative coverage is due to force-placed insurance, a type of property insurances that mortgage servicers can purchase on behalf on consumers who fail to adequately maintain insurance.
The total amount of refunds was established by an audit conducted Healey’s office. The allegedly victimized homeowners were sent settlement checks last week.
“Our investigation found that this insurance company was charging consumers for costly and duplicative coverage,” Healey said. “As a result of our audit, 4,500 homeowners will be getting a check in the mail after being forced to pay for products they did not need.”
Handling the case for Massachusetts were assistant attorney general Tim Hoitink, investigations supervisor Arwen Thoman, mathematician Burt Feinberg, legal analyst David Lim, and division chief Glenn Kaplan, all of Healey’s Insurance and Financial Services Division.