Massachusetts insurance agency that overcharged customers to pay $5.2 million in restitution

By Marian Johns | Feb 4, 2019

BOSTON  — A Massachusetts insurance agency will pay nearly $5.2 million in restitution after overcharging small business customers with hidden fees averaging more than $5,000 and some fees reaching 462 percent of the insurance premium, according to the Massachusetts Attorney General's Office. 

A Suffolk superior court judge ordered Kilgore Insurance Agency owners Cyrus Kilgore and Jeffrey Kilgore, along with agent Andrew Crowther Jr., to pay the restitution after a jury trial and appeal, the Attorney General's Office said.  The agency deceived customers by "whiting out" the real premium figures on polices and also leaving out pages with finance agreements sections so customers could not view them, according to Attorney General Maura Healy. 

“Kilgore Insurance and its owners orchestrated a scheme to charge consumers millions in undisclosed, excessive, and illegal agency fees,” Healey said in a statement.  “We are pleased that with this action, overcharged consumers will receive restitution.”

The Kilgore agency's illegal actions affected about 100 clients, according to Healey's office. 

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