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ISSUED 3/23/2010 FOR IMMEDIATE RELEASE

AUTO INSURER REFUNDS NEARLY $1 MILLION TO POLICYHOLDERS IN NEW YORK CITY, NASSAU AND SUFFOLK COUNTIES

Clarendon National Insurance Company has refunded approximately $992,000 to 1,227 automobile insurance policyholders the company overcharged when it improperly imposed a 30 percent rate hike, the New York State Insurance Department reported.

The Insurance Department said Clarendon also paid a $360,000 fine for overcharging the policyholders, most of whom live in New York City, Suffolk and Nassau Counties.

The actions stem from an Insurance Department review of Clarendon conducted after the company requested permission from the Department to withdraw from the private passenger automobile insurance market in New York State.

The audit revealed that Clarendon imposed the rate increase improperly in April 2006. Clarendon also applied incorrect credits to some customers between 2003 and 2009, not applying credits in some years and applying credits that the insured was not entitled to in other years.

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