A settlement has been reached in a pair of complaints against the companies that sell AARP auto insurance in Delaware, resulting in refunds or credits to 1,276 policyholders in the state, amounting to $151,551.

The complaints were filed against the Property and Casualty Insurance Company of Hartford (PCIC) and the Hartford Underwriters Insurance Co. (HUIC), two members of the Hartford, which together offer the auto coverage to AARP members, according to the Delaware Insurance Department.

The dispute arose over the companies’ 2008 rate filings, the department said, as PCIC’s rates became effective March 18, 2008, and HUIC’s rates became effective on July 1, 2008. Former Delaware Insurance Commissioner Matt Denn, now Delaware’s lieutenant governor, denied the rate increase.

HUIC and PCIC policyholders continued to receive notices of rate increase that would have commenced after the effective date of Denn’s denial order, so the former commissioner scheduled hearings against the two companies.

Karen Weldin Stewart

Under a settlement with current insurance commissioner, Karen Weldin Stewart, the Hartford will re-rate all in-force PCIC policies that were the subject of a renewal notices issued between Aug. 24, 2008, and Sept. 6, 2008, and will also re-rate all in-force HUIC policies subject to renewal notices between Sept. 5, 2008, and Oct. 4, 2008.

By re-rating these policies, the insurance department said, the Hartford will restore the policies to the rates in effect prior to their 2008 filings. Policyholders who paid their 2008 premiums in advance will receive refunds and those paying premium installments are set to receive credits on future bills.

“The department is first and foremost a consumer protection agency,” Weldin Stewart said in a statement. “The settlement with the Hartford achieves a substantial savings for a significant number of Delaware consumers. We continue to work diligently to ensure that Delaware consumers are not charged rates which are excessive and unfair.”