|For Immediate Release
April 8, 2013
|Contact: Vivian D. Laxton
Maryland Insurance Administration
Orders Insurer to Refund Consumers for Overpayment
Carrier Repays $312,551 to Marylanders
Thousands of Maryland consumers received refund checks from Life of the South Insurance Co. last month after the Maryland Insurance Administration discovered policyholders had been overcharged for life and health insurance premiums. A total of 10,105 policyholders were reimbursed for a combined $312,551.09.
The overpayment was discovered by the Maryland Insurance Administration (MIA) through the agency’s regular oversight process. In 2010, the MIA required the insurance company to reduce certain premium rates that were to be charged between Nov. 1, 2010, and Dec. 31, 2011. Reports filed by Life of the South in 2012 showed that the rate decreases had not been implemented. On Nov. 8, 2012, the MIA issued an administrative order against Life of the South for violating the state’s Insurance Article and regulations.
A consent order was signed by Life of the South and the MIA on Feb. 28, 2013. The order required the insurance company to identify affected consumers and refund them the amount owed. In addition, Life of the South was fined $12,500.
“This is an example of the important work being done by the Maryland Insurance Administration on behalf of consumers,” said Insurance Commissioner Therese M. Goldsmith. “Last year, Marylanders received more than $16.8 million in restitution through the MIA’s enforcement efforts.”
The Maryland Insurance Administration is an independent state agency that regulates Maryland’s $28 billion insurance industry and protects consumers through the enforcement of insurance laws and regulations.
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