Maryland Department of Insurance
National Association of Insurance Commisioner’s
Life Insurance Rates News Release: 1/17/2005
Category: Life Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for life insurance consumers nation wide, an amount which the agency contends that a select few insurance companies may have overcharged life insurance consumers by inflating
Maryland life insurance prices and
Maryland life insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Maryland life insurance
rates. The objective of NAIC staff throughout this action has been to provide life insurance rate relief for life insurance consumer policyholders who have been charged excessive life insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered life insurance companies to reduce its life owners rates by 12 percent in September 2004.
Maryland life insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that life insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
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Maryland Facts: Lord Baltimore, in 1632, and English settlers, many of whom were Roman Catholic, landed on St. Clement's (now Blakistone) Island in 1634. Religious freedom, granted all Christians in the Toleration Act passed by the Maryland assembly in 1649, was ended by a Puritan revolt, 1654–1658. From 1763 to 1767, Charles Mason and Jeremiah Dixon surveyed Maryland's northern boundary line with Pennsylvania. In 1791, Maryland ceded land to form the District of Columbia. In 1814, during the British attempt to capture Baltimore, the bombardment of Fort McHenry inspired Francis Scott Key to write the words to “The Star-Spangled Banner.” During the Civil War, Maryland was a slave state but remained in the Union. Consequently, Marylanders fought on both sides and many families were divided. Maryland's Eastern Shore and Western Shore embrace the Chesapeake Bay, and the many estuaries and rivers create one of the longest waterfronts of any state. The Bay produces more seafood—oysters, crabs, clams, and finfish—than any comparable body of water. Important agricultural products are greenhouse and nursery products, chickens, dairy products, eggs, and soybeans. Stone, coal, sand, gravel, cement, and clay are the chief mineral products. Manufacturing industries include food products, chemicals, computer and electronic products, transportation equipment, and primary metals.
Baltimore, home of the Johns Hopkins University and Hospital, ranks as the nation's second port in foreign tonnage. The capital, Annapolis, is the site of the U.S. Naval Academy. Among the popular attractions in Maryland are the Fort McHenry National Monument; Harpers Ferry and Chesapeake and Ohio Canal National Historic Parks; Antietam National Battlefield; National Aquarium, USS Constellation, and Maryland Science Center at Baltimore's Inner Harbor; Historic St. Mary's City; Jefferson Patterson Historical Park and Museum at St. Leonard; U.S. Naval Academy in Annapolis; Goddard Space Flight Center at Greenbelt; Assateague Island National Park Seashore; Ocean City beach resort; and Catoctin Mountain, Fort Frederick, and Piscataway parks. Free State; Old Line State In honor of Henrietta Maria (queen of Charles I of England)
The ten largest cities in Maryland are: Baltimore, Frederick, Gaithersburg, Bowie, Rockville, Hagerstown, Annapolis, College Park, Salisbury, and Cumberland.
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