Two California insurers pay $35,895 in restitution to 2,200 customers

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Two California-based insurance companies were ordered to pay $35,895 in restitution to more than 2,200 customers in November 2009 who received improper contracts from the companies.

The Virginia State Corporation Commission Bureau of Insurance ordered the restitution payments from Farmers Insurance Exchange and Mid-Century Insurance Co., both of Los Angeles, Calif., records show.

A bureau investigation found that the company made or issued improper contracts to 2,277 customers because the information contained in the contracts or policies was not in accordance with the rate and supplementary rate information filings in effect for the companies, records show.

As part of the settlement, both companies agreed to comply with a Corrective Action Plan.

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