(The following is a reformatted version of a press release
issued by the Office of Attorney General Martha Coakley
and received via electronic mail. The release was confirmed by
the sender.) 
December 4, 2012 
Encompass, Amica to Send Out 10,000 Refund Checks Before
February; Overall AG Investigation has Resulted in More Than $42
Million Back to Motorcycle Owners 
BOSTON - Massachusetts motorcycle owners will receive more than
$2.8 million in insurance refunds as a result of settlements
with two insurance companies that allegedly overcharged
thousands of policyholders, Attorney General Martha Coakley
announced today. 
The AG’s Office has reached similar settlements with 15 other
insurance companies since 2010 for a total of 17, returning more
than $42.8 million to Massachusetts consumers. 
“This investigation began with a single consumer complaint, and
has now resulted in the return of $42.8 million to Massachusetts
motorcycle owners,” AG Coakley said.  “These cases underscore
the need for transparent auto insurance rates. Consumers and
regulators have the right to know how insurance companies are
calculating premiums so that issues like these can be identified
and addressed.” 
According to the two settlements, both filed in Suffolk Superior
Court, Encompass Insurance Company of Massachusetts, a
subsidiary of Allstate, and Amica Mutual Insurance Company are
alleged to have illegally overcharged Massachusetts customers by
using inflated and un-depreciated motorcycle values to calculate
insurance premiums. 
Under the terms of the assurances of discontinuance, Encompass
will pay policyholders approximately $2 million and Amica will
pay more than $800,000. The two carriers will also make civil
payments to the Commonwealth totaling $93,600. 
Together, Encompass and Amica are required to send out more than
10,000 refund checks before February, with an average check
around $280. 
All 17 of the related motorcycle settlements stem from a
complaint the AG’s Office received from a consumer who owned a
1999 Harley-Davidson Road King Classic. In each year between
2003 and 2008, the consumer’s insurance company calculated the
consumer’s premiums as if his 1999 Road King Classic were brand
new and worth $20,000. By 2003, the consumer’s four-year-old
motorcycle was worth significantly less than its original price,
and by 2008, the nine-year old motorcycle was worth less than
$12,000.  Still, in each year between 2003 and 2008, the
consumer’s insurance company used the inflated $20,000 value to
rate his policy, resulting in more than $1,500 in overcharges. 
In order to be eligible for a refund under AG Coakley’s
settlements, a consumer must have purchased comprehensive and/or
collision insurance coverage for a motorcycle on or after Jan.
1, 2002 and that motorcycle must have been overvalued by the
insurance company for the purpose of calculating premiums.
Consumers who have questions about the settlements or their
refunds may visit the Attorney General’s Motorcycle Insurance
Settlements FAQ or call the Attorney General’s Insurance &
Financial Services Division at 1-888-830-6277. 
These matters were handled by the Insurance & Financial Services
Division’s Mathematician Burt Feinberg, Investigations
Supervisor Arwen Thoman, Mediator Rebecca Dutra and Assistant
Attorney General Glenn Kaplan, Chief of Attorney General
Coakley’s Insurance & Financial Services Division. 
Jillian Fennimore
(617) 727-2543 
(bjh) NY 
Press spacebar to pause and continue. Press esc to stop.