Federal decide dismisses Erie Insurance coverage lawsuit in opposition to Maryland regulators | Insurance coverage Enterprise America



Case includes allegations of discriminatory practices

Federal judge dismisses Erie Insurance lawsuit against Maryland regulators

Insurance coverage Information

Mika Pangilinan

A federal decide has dismissed a lawsuit filed by Erie Insurance coverage in opposition to Maryland regulators over allegations of discriminatory practices.

Choose Julie R. Rubin issued the order following a continuing held in open courtroom earlier this week, the Baltimore Solar reported. 

The lawsuit filed in June claimed that state authorities acted illegally in figuring out that Erie engaged in insurance coverage “redlining” primarily in Black neighborhoods inside Baltimore.

In keeping with Erie, Maryland Insurance coverage Administration (MIA) carried out an expedited investigation of complaints made by insurance coverage brokers and subsequently launched findings that unlawfully disclosed confidential enterprise info.

Three brokerage companies lodged separate complaints in opposition to Erie in January 2021. A fourth brokerage filed the same grievance in December 2021.

When investigating these complaints, MIA had discovered that Erie unlawfully canceled or rejected enterprise from brokers based mostly on race or for different discriminatory or arbitrary causes.

The company moreover decided that the insurer unlawfully altered or canceled agreements for certified candidates based mostly on an “antagonistic loss ratio.”

“The loss ratio metrics that Erie adopted have been designed to focus on businesses writing enterprise in city areas with giant minority populations and to cut back the amount of enterprise being written in these areas,” MIA’s ruling said.

In response, Erie had sought a short lived restraining order to forestall the discharge of MIA’s willpower letters and requested the courtroom to declare these letters illegal. It additionally requested a trial by jury.

Choose Rubin, nevertheless, dominated on Monday that no listening to could be crucial and denied the restraining order request. The matter was as an alternative directed to undergo a state administrative continuing.

Erie spokesperson Matthew M. Cummings didn’t reply to the Baltimore Solar’s request for remark. He did converse with the paper in June, stating that the corporate finds discrimination of any type to be “abhorrent and inconsistent with the values which have guided our enterprise for practically 100 years.”

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