New York Settles for College Insurance Refunds

New York officials say they’ve reached a settlement with Markel Insurance Co. that will result in $2.75 million in restitution to college students who were overcharged for insurance.

The Attorney General’s office and Department of Financial Services say the health, accident and sports accident insurance plans resulted in overcharges to about 22,000 students under state regulations.

They say Markel will also pay $990,000 in state penalties.

State regulations require health insurance plans to maintain a minimum loss ratio of 65 percent, reflecting amounts paid in claims compared to premiums charged.

Students will be eligible for refunds averaging $107 if they enrolled in a Markel plan in the school years 2007-2008 to 2009-2010 and 2011-2012.

The list includes 5,800 from Bard College.

Markel did not in initially reply to requests for comment Tuesday.