BOSTON – A Colorado-based insurer last week agreed to pay $42,000 to resolve allegations that it illegally and prematurely canceled certain auto-insurance policies belonging to roughly 50 Massachusetts customers, Attorney General Martha Coakley announced.
According to the assurance of discontinuance, Flatiron Capital issued cancellation requests to insurance companies with an effective date that was the same as the date of the notice, violating a state insurance statute that requires premium financing providers to give at least a 20-day notice to the insurance company that issues the policy.
Under the terms of the settlement, Flatiron will make payments totaling more than $32,000 to about 50 customers in Massachusetts. Flatiron will also pay $10,000 to the state. •