Legal Question in Civil Litigation in Maryland

I recently found out that my condo insurance had been charging me a premium based on my being a landlord of the property rather than a resident. I did rent the property some years ago and even though their records show a change of address and change to the policy, they kept charging me. The difference in premium is about $800. I have asked a lot of questions and they have submitted paperwork to support my claim that they overcharged me.

I file with the state insurance administration and they are in the midst of reviewing paperwork.

In the meantime, the insurance company sent me a check for $500 with a letter simply saying "there has an adjustment to your policy premium and you are entitled to a partial refund" -- no details on the change in policy.

1. should I accept this check or does that constitute full acceptance of the case being settled?

2. should I accept this check and see what the state insurance admin finds?

3. if the state does NOT find that they owe me additional money, is it reasonable to take them to small claims court and ask for the full $800 plus interest? They overcharged me for 12 years.

thank you.


Asked on 8/26/10, 12:48 pm

2 Answers from Attorneys
Phillip M. Cook Cook Legal Services, LLC

1. It depends on the language of the check and/or any other documents that they say you "sign" or "acknowledge" by depositing or cashing the check. An attorney could help you with that.

2. You should accept it, but not deposit or cash it or otherwise endorse it until you can speak with a Maryland attorney above #1 above.

3. In Maryland, Magistrate Courts act as "small claims courts". And yes, if you can show that they overcharged you for 12 years, you can take them to court. Get an attorney first!

Best of luck.*******The above is for informational purposes only and does not create an attorney-client relationship.******

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Answered on 8/31/10, 2:50 pm
Richard Lebovitz Richard D. Lebovitz, Esquire

If the check does not have any language on it stating full and final settlement then I see no harm in cashing or depositing it. I would follow up with the insurance commission about their findings and contact the insurance company/your agent to explain the reduction in premium and request for credit.

yes, you may have a potential claim in district court for the difference, but you should meet with myself or another attorney prior to filing the claim to review your options.

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Answered on 9/01/10, 5:03 am


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