Maryland’s insurance regulator has settled a long-running dispute with Erie Insurance Group over the insurer’s practices involving some urban agents and their insureds.
The Maryland Insurance Administration said its market conduct examination that was actually conducted four years ago uncovered unlawful practices resulting in fewer Erie policies written and renewed in urban ZIP codes, particularly in Baltimore City.
The examination found that Pennsylvania-based Erie encouraged insurance agents affiliated with its companies to engage in a practice they called “front line underwriting,” in which the agents were encouraged to reject otherwise qualified applicants who they deemed might be unp