Justia Maryland Supreme Court Opinion Summaries

Petitioner, the Maryland insurance commissioner, issued a cease-and-desist order to Respondents, several premium finance companies that provided loans primarily to customers of the Maryland Automobile Insurance Fund, purporting to prevent them from charging interest on loans to consumers to pay automobile insurance premiums in excess of the statutory maximum. Respondents requested a hearing. An associate deputy insurance commissioner presided over a hearing at the Maryland Insurance Administration (MIA) and issued a final order affirming the commissioner's cease-and-desist order. The circuit court concluded that the administrative hearing violated Respondents' right to fundamental fairness and due process of law because the commissioner delegated the decision-making authority to a subordinate. The court of special appeals affirmed. The Court of Appeals vacated the court of special appeals and circuit court and affirmed for the most part the decision of the MIA, holding, inter alia, that (1) the MIA hearing was fair and without undue "command influence"; and (2) the commissioner's interpretation of Md. Code Ann. Ins. 23-304 was correct, and Respondents violated the statute when their premium finance agreements operated to assess a finance charge in excess of 1.15 percent for each of thirty days. View "Md. Ins. Comm'r v. Cent. Acceptance Corp." on Justia Law

As part of the requirements of refinancing his home loan, Maurice Carter purchased lender's coverage title insurance from Huntington Title & Escrow. On behalf of a putative class of similarly situated persons, Carter alleged in a complaint filed in the circuit court that he was entitled to a reduced policy reissue rate, as mandated by the Maryland Insurance Administration (MIA), rather than the original issue rate actually charged. Huntington filed a motion to dismiss, arguing that the MIA was invested with primary jurisdiction over Carter's claim, such that Carter must pursue his claim initially in an administrative, rather than judicial, forum. The circuit court granted Huntington's motion and dismissed the case. The Court of Appeals issued a writ of certiorari and vacated the judgment of the circuit court, concluding that (1) the MIA possessed primary jurisdiction over Carter's claim, and, consequently, Carter must seek relief initially through the administrative process; and (2) the circuit court should stay the case pending the outcome of any administrative proceeding rather than relinquishing jurisdiction by dismissing Carter's case. View "Carter v. Huntington" on Justia Law

Claimant filed a claim against Government Insurance Company ("GEICO") for uninsured/underinsured motorist coverage after sustaining serious injuries as a result of a car accident. At issue was whether the coverage provisions of the GEICO policy entitled claimant to underinsured motorist benefits under the policy. The court held that claimant was not entitled to uninsured/underinsured coverage where Exclusion number 4 in the GEICO insurance policy was authorized by section 19-509(f)(1) of the Insurance Article, Maryland Code, 1997, 2006 Repl.Vol., and was applicable to the facts of this case.