Insurer fined $3.75M for overcharging college students

The New York attorney general's office is requiring Markel Insurance Company to pay $3.75M for overcharging college students on their health plans. Markel's student coverage didn't meet legal requirements for minimum loss ratios, which led to the insurer overcharging about 22,000 students in New York nearly $3 million. The investigation, jointly led by the attorney general and the state department of financial services, also found Markel paid improper broker bonuses, incentivizing brokers to keep loss ratios lower than the legal minimum. The settlement between the state regulators and Markel requires the insurer pays more than $2.75 million in restitution to the affected students and colleges, plus a $990,000 penalty to the state. "With the high cost of college already straining family finances across New York, students and parents shouldn't have to worry about paying even more for health insurance," Attorney General Eric Schneiderman said yesterday in a statement. "This settlement sends a clear message: Insurance companies, like everyone else, must play by the rules and work together with government to bring down the cost of healthcare." Statement