Insurance regulator reaching refund agreement
RALEIGH — North Carolina's insurance regulator says it's reached an agreement with two insurers that will see $1.6 million in refunds for mobile home owners and renters who may have been overcharged.
The state insurance department says the rebates are the result of an investigation launched after a consumer complained in September 2011. Ohio-based American Modern Home Insurance Co. and its affiliate American Family Home Insurance Co. said Friday it's already sending policyholders refunds and letters explaining what happened.
Regulators found the companies incorrectly set rates for nearly 27,000 mobile home policies sold in North Carolina between 2008 and 2012. Those policyholders divide more than $1 million in premiums paid.
More than 26,000 consumers who bought renter's policies will divide more than $500,000.
The companies also agreed to a $260,000 penalty.