A California-based insurance company was fined $10,000 and ordered to pay $16,324 in restitution and fees after Maryland regulators determined that it offered a personal injury protection waiver form that was in a “font less than 10 point and boldface type,” which violates state law.

Unitrin Direct Property and Casualty Co. of Vista, Calif., admitted the error, paid the fine and provided restitution to 11 claimants, according to Maryland Insurance Administration records.

An MIA investigation found that between Aug. 2, 2006, and Sept. 28, 2007, a total of 5,262 policies included the PIP waiver form that did not meet state requirements. From those policies a total of 1,286 claims were received.

“Of those 1,286 claims, respondent denied PIP coverage on 11 claims on the basis of the improper PIP waiver,” the MIA said in a consent order signed by Insurance Commissioner Ralph S. Tyler and David M. Elkins, senior vice president of Unitrin Direct, March 12.

Maryland law requires that the PIP waiver form “shall clearly and concisely explain in 10 point boldface type” the coverage that would be provided under the policy, each effect of the waiver, that failure of the first named policyholder to make a waiver requires the insurer to provide coverage under a separate provision in state law, that an insurer many not refuse to underwrite someone who refuses to waive the coverage, and that a waiver made must be “an affirmative written waiver.”

This story originally appeared in the July 2009 print edition of Insurance & Financial Advisor.