ST. PAUL, Minn. - Thousands of Minnesotans who booked a flight using Travelocity.com and were automatically enrolled in travel insurance are about to get a refund.
The state's Department of Commerce announced Tuesday that 81,970 Minnesota consumers will share nearly $2.5 million.
The Department said people who booked a flight on Travelocity.com between June 1, 2009 and January 24, 2012 were automatically enrolled in travel insurance policies by New York-based National Union Fire Insurance Company of Pittsburgh and Wisconsin-based Travel Guard Group, Inc.
To decline coverage, consumers had to "opt-out" of the plan. The cost of the plan, which ranged between $25 and $45 per traveler, was automatically included in the total purchase price unless a consumer chose the opt-out selection.
"Tens of thousands of Minnesota travelers were allegedly enrolled automatically in travel insurance policies when they purchased their airline tickets online," said Commissioner Rothman. "These allegations show a clear violation of state law and represent a breach of consumer trust. We ordered the companies involved to stop these deceptive practices and properly reimburse all affected consumers."
Along with the refund, the commerce department ordered National Union Fire Insurance to pay a $250,000 civil penalty for alleged market misconduct.
Minnesota consumers who think they may be eligible for a refund are encouraged to contact the Department of Commerce.
Any Minnesota consumer who thinks they may have inadvertently purchased travel insurance on another website or from another insurer is encouraged to contact the Minnesota Department of Commerce Consumer Help Line by phone at (651) 296-2488 or (800) 657-3602.
Complaints can also be sent by email to consumer.protection@state.mn.us or by mail to:
Minnesota Department of Commerce
85 7th Place East, Suite 500
Saint Paul, MN 55101
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