The state of Maryland says that insurance company Allstate must refund $17.5 million to more 20,000 auto insurance policy holders. According to the Maryland Insurance Commissioner’s office, the administration had received numerous complaints after the property and casualty insurer had sent premium increase notices to policyholders between January 2003 and March 2005 without detailing the violation or accident that each policyholder had committed which led to the premium increase. Refunds will average $850, and Allstate is being fined $100,000 for not complying with state law by sending the premiums without the required information.
A spokesperson for Allstate says that every policyholder who received the notice of a premium increase had a past violation or accident that justified the increase. They admit, however, that the specific statutory language was missing and have expressed their regret for the error.
Auto insurance laws in the State of Maryland require that all drivers must have:
· Auto liability insurance.
· 20/40/15 liability coverage. That’s $20,000 per person for injuries caused by a driver to another party ($40,000 maximum) and $15,000 for damages caused to another driver’s vehicle or property.
· Uninsured and underinsured motorist coverages.
· A minimum of $2,500 in personal injury protection.
One of the responsibilities of the Maryland Insurance Administration is to make sure that insurance companies and producers follow the state’s insurance laws.
There are more than 200 insurance companies that are allowed to sell auto insurance in Maryland. Auto insurance protects drivers from incurring financial losses such as medical bills, legal services, and car repair and rental services that may result in the event of an accident.
There may be times when, following a vehicle-related accident, a person may find themselves in an insurance disagreement with an insurance company over the amount of settlement the person is entitled to receive. The personal injury law firm of Lebowitz and Mzhen handles these types of disagreements and can help you evaluate whether the proposed settlement is efficient. If the settlement amount is inadequate, Lebowitz and Mzhen can file a lawsuit and litigate your case in court. Contact Lebowitz and Mzhen for a free consultation.
Maryland Orders Allstate To Return $17.5 Million, Chron.com, October 20, 2006
Maryland Auto Insurance, Autoinsurancedepth.com
Maryland Auto Insurance, Insureme.com
Related Web Resources:
Maryland Department of Transportation Motor Vehicle Association