Attorney General Martha Coakley’s office has obtained a consent judgment against Hingham-based insurance agency College Advisors Group (CAG), its sister companies, and its operator, Kirk Brown.

The settlement resolves allegations that Brown and CAG knowingly sold consumers unsuitable insurance policies they could not afford. Under the terms of the settlement, Brown and CAG must pay $245,000 to the commonwealth, which will be used to compensate approximately 25 families.  

"We are pleased that the families who paid Brown for college funding advice, and instead were misled into buying large and inappropriate life insurance policies, will be compensated under this settlement," Coakley said. "As families struggle to finance a college education in today’s economy, it is imperative that the advice they receive meets their needs and comes from a licensed, qualified professional who is not motivated merely by large commissions."

The complaint, filed in February 2008, alleges that beginning in 2003, Brown and CAG misled consumers by purporting to offer advice concerning the college financial aid process and methods of financing college tuition.