Three affiliated auto insurance companies paid more than $100,000 in fines and restitution after Maryland regulators found they improperly handled premium increase notifications.

The Maryland Insurance Administration imposed a $10,000 fine against Liberty Insurance Corp., Liberty Mutual Fire Insurance Co. and The First Liberty Insurance Corp., all based in Boston, Mass., in October.

The companies were found between December 2008 and June 2009 to have sent 160 premium-increase notices to policyholders whose vehicles were involved in accidents, according to MIA records. The notices failed to explicitly state that the insured was at fault or negligent, which is required by state law.

The MIA found that 32 of the policies were cancelled on the effective date, and policyholders paid the increased premiums in 128 cases. The companies paid restitution of $90,315 to the 128 affected policyholders, according to the MIA.