MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
XXII. SUMMARY OF VIOLATIONS
Following is a summary of the violations identified in this examination. References are provided in parentheses to the pages of the report where the detailed examination findings are presented.
The examiners reviewed the Local Agency’s “Corrective Actions Log” for the survey period January 1, 1998 through October 31, 2000. This log is maintained quarterly, and contains the name of agents subject to an agency corrective action for violation of Company or Agency procedures. During this period 15 agencies active agents of the 50 were cited in the log for various regulatory violations. Although the Agency required that 11 of these agents be retrained, there was no documentation that the retraining had occurred. The Company failed to show that it properly supervised agents, which is a violation of COMAR 31.15.03.07C (pages 7-8).
The territorial vice-president was to submit a plan of action to the company to correct the customer service and contact issue deficiencies. The examiners did not see an action plan. The examiners direct the Company to submit a copy of the action plan implemented as evidence of the corrective action (page 16).
Two policies reviewed by the examiners and written by Agent 880-2 District L56 as the result of the insured taking reduced paid up policies for their original insurance contracts are violations of COMAR 31.09.05.06B which states replacement means any transaction in which the existing insurance has been converted to reduced paid-up insurance (page
The Company database showed Agent 822-2 District A66 replaced 13 policies. One policy was replaced in violation of COMAR 31.09.05.07B(2) which requires that within 3 working days of the date the application is received in the home office notification be sent to the replaced insurer advising of the proposed replacement (page 20).
MET LIFE REPORT NO. 786-01