Premium Funding Firm Reaches $82K Settlement With State
IPFS Corp., a national company that provides financing for insurance premiums, has reached an $82,000 settlement with Massachusetts Attorney General Martha Coakley's office over allegations that it illegally canceled auto insurance policies.
The complaint concerned Massachusetts customers and small businesses that used premium finance accounts originated by Imperial Credit Corp., a company that was acquired by IPFS last year. Coakley's office argued that ICC cancelled the policies of customers whose payments had lapsed, providing only a three-day window for them to try to bring the accounts current, rather than the 30 days required by state law.
Under the settlement, IPFS, which has an office in Worcester, must pay $62,042 to Massachusetts customers and small businesses that were affected by the practice, plus $20,000 to the state. It must also bring its policies into compliance with state law.
IPFS did not return a call for this story by press time.
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