Arbella Mutual Insurance Co.

Boston, MA: (Sep-17-07) Attorney General Martha Coakley brought charges against Arbella Mutual Insurance Co., of Quincy, alleging that the company failed to adhere to guidelines spelled out in state insurance laws. Coakley's staff accused Arbella of failing to adhere to state guidelines when the company canceled a group of customers who had been with Arbella for longer than 60 days. The attorney general's office also claimed that Arbella canceled many customers' policies without properly explaining why the cancellations took place, another violation of state law.

The lawsuit, filed in Suffolk Superior Court, reached settlement when Arbella Mutual agreed to a $56,000 payout and change language in its homeowner insurance policies. It is unclear how much money Arbella would need to pay to reimburse customers who were canceled for improper reasons. Sources stated that Arbella will need to send notices to those customers and await responses explaining what they believe they are owed. Arbella would only need to reimburse the former customers for any excess payments made during the rest of the terms of the policies they would have had with Arbella if they had not been canceled. [PATRIOT LEADGER: INSURANCE CANCELLATION]

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Published on Sep-19-07