National Economic Climate Cited as Reason for Dropping 5 Percent Rate Cut Proposal
The Maryland Automobile Insurance Fund (MAIF) has withdrawn its filing to reduce its private passenger automobile insurance rates, according the Maryland Insurance Administration.
The MAIF filed a plan back in June to lower rates by 5 percent – a move that touched off a rate hearing, which was held in August.
The insurer cited a deteriorating national economic landscape for the rate withdrawal.
In a letter to the agency, MAIF wrote that “after careful review, MAIF remains as committed as ever to offering the most affordable rates possible, but has reluctantly concluded that the dramatic September and October changes to our national economy compel it to withdraw the rate filing at this time.”
Commenting on the decision, Insurance Commissioner Ralph Tyler said “while it may not be the outcome that some policyholders were hoping for, we must maintain a perspective that the company also has to balance its obligations to policyholders to remain viable and financially sound.”
The decision follows a 45-day deferral granted to MAIF in October. That same reason – a deteriorating economic picture – was given for asking for a deferral. At the time, MAIF officials said deferring the matter for would give them ample time to gauge how the economy would affect the rate cut.
Topics Maryland
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