Liberty Mutual Insurance Company has reached a $7.7 settlement with the State of Minnesota after it was alleged the insurer violated insurance regulations.

The Minnesota Department of Commerce investigated the insurance company for allegedly breaking state regulations on antitheft protection device discounts, automated rate increases and multi-policy discounts.

“When consumers pay premiums…they are protected by state law to ensure they get what they pay for,” says Grace Arnold, Minnesota’s commerce commissioner.

As part of the settlement, it was determined that Liberty Mutual did not offer a minimum auto insurance policy discount for antitheft protection devices. As a result, the insurer has refunded and credited a total of $2.27 million to their 52,604 current and former policy holders affected.

In addition, the Department of Commerce investigated Liberty Mutual for rate increases that were automatically applied. The settlement contains $2.1 million for credits and $670,000 for refunds. The money will be paid to more than 28,000 current and former policyholders. Current policyholders can expect to receive an average of $178, while former policyholders will get about $77 apiece.

Liberty Mutual will also provide refunds and credits to settle allegations of offering multi-policy discounts for bundling homeowners and auto insurance policies. The settlement contains about $2.7 million for current and former policyholders, with affected policy holders receiving an average of $350.

To ensure Liberty Mutual honors the settlement agreement, a civil penalty of $150,000 has been stayed. This means as long as Liberty Mutual refunds or credits their policyholders, the fine will be voided.