Md. Ins. Comm'r v. Cent. Acceptance Corp.
Annotate this CasePetitioner, 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.
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