AUGUSTA (AP) – Maine state officials say MEGA Life and Health Insurance Company, accused of improperly determining premiums for individual health insurance policies, has agreed to pay a $1 million fine and to refund $4.6 million, plus interest, to consumers.

The penalties were announced Thursday by the Maine Bureau of Insurance and the Maine Attorney General’s Office. Maine Insurance Superintendent Mila Kofman said the settlement carries one of the largest fines and amount of consumer restitution agreed to in Maine.

State officials said the settlement involves approximately 9,830 policies issued from Jan. 1, 2004 through Dec. 31, 2007.

MEGA Life has 30 days to notify the Bureau of Insurance of how it will allocate the restitution to specific policyholders.


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