BALTIMORE – On September 13, 2018, Maryland Insurance Commissioner Al Redmer, Jr. petitioned the Circuit Court for Baltimore City for an immediate order to rehabilitate Paramount Insurance Company with the company’s consent. That same day, the Circuit Court granted a motion and signed the Order of Rehabilitation by Consent (Court Order).
The Court Order formally places Paramount Insurance Company (“Paramount”) into rehabilitation, which is a type of receivership, and appoints Risk & Regulatory Consulting, LLC as the receiver. The receiver has taken possession of Paramount and, under the general supervision of the Court, will administer the company pursuant to the Court Order and in accordance with Maryland law.
“The decision to place Paramount into receivership came after many hours of discussion and deliberation,” said Commissioner Al Redmer, Jr. “The Insurance Administration supports competition in the marketplace; however, it became apparent to us and to Paramount’s board of directors that placing Paramount into receivership was the right course of action for their policyholders.”
On September 10, 2018, Commissioner Redmer issued an Administrative Order prohibiting Paramount from making any disbursement, payment or transfer of assets, or issuing or renewing any insurance policies, without the prior approval of the Commissioner. For information related to the Administrative Order and the Court Order, click here.
Paramount currently has approximately 9,000 property and casualty insurance policies. Over 8,000 policyholders live in Maryland and close to 800 live in Washington, D.C. Policyholders should continue to pay their premiums to ensure coverage remains in force. Failure to pay premiums may result in lapse of coverage and a fine from the Maryland Motor Vehicle Administration.
About the Maryland Insurance Administration
The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin or Twitter at @MD_Insurance.
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