Progressive Insurance Fined, Will Refund Customers
Feb. 12, 2019—Progressive Insurance will refund customers in Rhode Island nearly $2 million, reported Insurance Business.
A consent agreement with the state Department of Business Regulation (DBR) revealed that 4,933 Progressive policies were “surcharged out of compliance using a six-month renewal period instead of a 12-month renewal period.” These policies were charged extra over a five-year period, according to the report.
Following the DBR’s rate filing review, Progressive announced that it would issue $1,900,000 in refunds and interest to 4,096 former policyholders. The insurer will also issue $80,000 in credits to 837 current policyholders, and has agreed to pay a $10,000 fine.