Liberty Mutual charged penalty for misleading consumers, Del. Department of Insurance announces

DOVER, Del. – The Delaware Department of Insurance says that Liberty Mutual has paid a penalty of $300,00 for misleading consumers.

We’re told Liberty Mutual has paid the penalty across three member companies with an express stipulation that an additional $200,000 must be paid if conduct is not immediately remedied.

During a several months long investigation, 39,806 instances of false information and advertising were allegedly uncovered during the examination of the companies. In nearly 32,000 instances, Liberty Mutual reportedly listed a “claims free” discount on homeowners insurance declaration pages, when no such discount was offered in Delaware. In 8,110 cases, Liberty companies indicated auto insurance consumers could access safety discounts if the consumers’ vehicle used adaptive cruise control, lane departure warning, or collision preparation systems, but offered no such discounts on Delaware policies.

“When shopping for insurance coverage, Delawareans already have so much to think about,especially in this economy. Our team is dedicated to uncovering misleading advertising and other misrepresentations that could lead to consumers choosing the wrong coverage for their needs, or their wallets,” said Insurance Commissioner Trinidad Navarro. “We have seen this problem before, and we are committed to ensuring it is corrected.”

Penalties are paid to the State’s General Fund.