Ohio 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
Ohio life insurance prices and
Ohio life insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Ohio 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.
Ohio 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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Ohio Facts: Ohio is a Midwestern state in the northeastern corner of the United States. It was the first and eastern-most state in the Midwest admitted to the Union under the Northwest Ordinance. Its U.S. postal abbreviation is OH; its old-style abbreviation is O. Ohio is an Iroquois word meaning "great water." The name refers to the Ohio River that forms its southern border.
Ohio, the region north of the Ohio River and south of the Great Lakes, was originally controlled by various native tribes. At the time of European colonization, the Iroquois federation of the New York area claimed the region including the modern territory of Ohio as a hunting grounds. However, locally, the region was populated by several other peoples, principally the Miamis, Wyandots, Delawares, Shawnees, Ottawas, and Eries. During the 18th century, the French set up a system of trading posts to control the fur trade in the region.
Ohio cities and towns of historical or cultural importance include: Akron, Canton, Cincinnati, Cleveland, Columbus, Dayton, Hamilton, Lakewood, Parma, Springfield, Toledo and Youngstown.
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