By Robert Weisman Globe Staff

Life Insurance of North America has agreed to pay more than $1.7 million to Massachusetts consumers and the state government to settle allegations that the company used deceptive tactics to market cancer and surgical insurance to more than 1,000 veterans living in the state.

The consent judgment containing the settlement was filed Monday in Suffolk Superior Court.

An accompanying complaint lodged by Attorney General Martha Coakley’s office said Life Insurance of North America misrepresented its insurance products as a government benefit for veterans, illegally denied coverage based on pre-existing conditions, made false claims about rates, exaggerated benefits, and misrepresented coverage limits.

Under terms of the settlement, the insurer will pay a minimum of $650,000 to reimburse consumers, many of whom are World War II veterans. It also must pay more than $1 million to the state government to cover civil penalties, promote programs to assist veterans, and pay for the cost of the investigation. The insurer has moved to terminate the products in Massachusetts.