The Delaware Department of Insurance (DOI) announces that Liberty Mutual has paid a penalty of $300,000 across three member companies.
The penalty is in response to close to 40,000 instances of false information and advertising uncovered during an examination by the department.
DOI found the companies advertised a “claims free” discount on homeowners insurance declaration pages when no such discount was offered in Delaware.
In just over 8,000 cases, Liberty companies indicated auto insurance consumers could access safety discounts if their vehicle included certain safety features, like adaptive cruise control, but these discounts were not offered 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 Delaware Insurance Commissioner Trinidad Navarro. “We have seen this problem before, and we are committed to ensuring it is corrected.”
Liberty Mutual General Insurance Company and Liberty Mutual Fire Insurance Company were previously investigated from January 2018 through March 2021, and DOI encountered nearly 35,000 instances of false information and advertising, as well as additional violations of the Insurance Code. The companies each paid $150,000 in penalty, but their noncompliance with orders to correct the issue resulted in an additional examination.
In addition to the $300,000 penalty that will head to the state’s General Fund, $200,000 must be paid if corrective changes are not immediately made.
