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Erie Insurance Exchange policyholders sue over service charges

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Wednesday, Feb. 6, 2013, 5:40 p.m.

A group of Erie Insurance Exchange policyholders claim in a federal lawsuit filed Wednesday that the unincorporated association's board has wrongfully allowed Erie Indemnity Co. to take more than $300 million in service charges the members paid since 1998.

The lawsuit seeks the return of the money plus interest and punitive damages from the trustees, who are also the board for the company. A spokesperson for the Erie-based insurer couldn't be reached for comment.

Erie Insurance Exchange and Erie Indemnity Co. operate under the Erie Insurance Group, which is the 20th largest property and casualty insurer in the country and the third largest auto insurer in Pennsylvania, according to the company's website.

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