Commerce department claims Travelocity.com improperly sold insurance; refunds …

Article from Alexandria Echo Press:

ST. PAUL, MN – The Minnesota Department of Commerce announced Tuesday that 81,970 Minnesota consumers who purchased travel insurance on Travelocity.com between June 1, 2009 and January 24, 2012 will receive nearly $ 2.5 million in refunds.

A consent order issued by Commerce Commissioner Mike Rothman last Friday alleges that New York-based National Union Fire Insurance Company of Pittsburgh and Wisconsin-based Travel Guard Group, Inc. violated state law by automatically enrolling consumers in optional travel insurance policies. The order also requires NUFIC to pay the State of Minnesota a $ 250,000 civil penalty for alleged market misconduct.

“Tens of thousands of Minnesota travelers were allegedly enrolled automatically in travel insurance policies when they purchased their airline tickets online,” said Commissioner Rothman. “These allegations show a clear violation of state law and represent a breach of consumer trust. We ordered the companies involved to stop these deceptive practices and properly reimburse all affected consumers.”

The Department alleges that prior to January 25, 2012, consumers who booked a flight on Travelocity.com were automaticall………..

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