BALTIMORE—Maryland consumers received nearly $2 million in refunded premium and interest payments after an investigation by the Maryland Insurance Administration discovered that two Erie insurance companies did not provide a notice of premium increase to some policyholders as required by Maryland law. The entire amount of the additional premiums paid, plus 10 percent interest, was refunded.
During an investigation by the Maryland Insurance Administration’s compliance and enforcement unit, it was discovered that the companies – Erie Insurance Co. and Erie Insurance Exchange – failed to send a notice of premium increase for private passenger motor vehicle liability insurance to more than 5,500 policyholders.
As part of a consent order, the Erie companies refunded premiums and interest totaling $1,999,598.32 to Maryland consumers. In addition to refunding premiums and interest, the Maryland Insurance Administration fined the companies a combined $50,000.
View the administrative order on the Maryland Insurance Administration’s website:
MIA-2012-09-265: Erie Insurance Co./Erie Insurance Exchange
www.mdinsurance.state.md.us/sa/documents/MIA-2012-09-265-Erie.pdf
The Maryland Insurance Administration (MIA), founded as the Maryland Insurance Division in 1872, is an independent State agency located in downtown Baltimore. This agency regulates Maryland’s $26 billion insurance industry and makes certain that insurance companies, health plans and producers (agents and brokers) comply with Maryland insurance law. The MIA also licenses more than 110,000 producers and approximately 1,500 insurance companies, regulates insurance rates, monitors insurer solvency, investigates consumer complaints and travels across the State providing consumers with educational materials on insurance. These materials may also be found at www.mdinsurance.state.md.us.
Source: Maryland Insurance Administration (MIA)