Regulators said 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, regulators said this week.
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.
Regulators stated that 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.
Source: Maryland Insurance Administration