Nine affiliates of Liberty Mutual Insurance agreed to pay a $900,000 fine for market conduct violations, to refund $3.1 million to policyholders, and to implement underwriting and other business practice reforms, California officials said Friday. The action by the California Department of Insurance shows that financial services firms must follow their own stated guidelines, as well as regulatory mandates, in conducting their business operations. The companies, members of the Safeco Property Casualty Group, were fined for the unapproved use of credit scores to deny homeowners coverage, failing to follow their own approved rating guidelines and other auto rating violations, said CDI Commissioner Dave Jones. "This case is a prime example of why market conduct exams are an important tool in insurance regulation. When we find that insurers are not complying with the law, we are able to take appropriate action and protect consumers," Jones said. Market conduct examinations are audits
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