Coloradoans who used American Underwriters Insurance will receive more than $875,000 in refunds from the Kansas-based insurance company.
The Colorado Division of Insurance found that company used inaccurate rates and overcharged Colorado clients.
The inaccuracies were discovered during a yearlong review of every insurance company offering credit insurance products in Colorado, an effort to ensure the companies were in compliance with state rating requirements.
Credit insurance is sold to consumers to pay credit card or other loan debts in the event of death, disability or loss of employment.
Individual refund amounts will range from $100 to $3,000, said Commissioner Marcy Morrison.
The company acknowledged the inaccuracy, and agreed to refund the overcharged amount, plus 7 percent interest. Interest will be calculated from the date the certificate was issued through Aug. 1.