An insurance company in Philadelphia, Pa., paid a $125,000 fine to Maryland regulators after a four-month battle over a policyholder in Rockville, Md.

The Maryland Insurance Administration received a complaint last January from a policyholder regarding a policy written by Connecticut General Life Insurance Co., a CIGNA company, based in Philadelphia.

When contacted, CGLIC said in a letter dated Feb. 9 that the complainant, The Emmes Corp., had a policy issued in Virginia, according to MIA records.

“Since The Emmes Corporation’s policy is issued in Virginia, it appears that this policy falls outside the jurisdiction of the State of Maryland,” the letter said.

In March, CGLIC officials told the MIA the negotiation and sale of the policy occurred electronically and over the phone. “While the Policy was mailed to a Maryland address, the parties neither negotiated the terms of the Policy in MD, nor did they intend the terms of the Policy to be construed by Maryland law, as is evidenced by the parties’ agreement to [locate] the policy in Virginia,” a letter said.

One month later, CGLIC said the Emmes Corp. policy was issued from Bloomfield, Conn. The address for Emmes Corp. is 401 N. Washington St. in Rockville, Md., and the policyholder does not have offices in Virginia, CGLIC said in a subsequent letter.

An MIA investigation found that the premiums are paid from Rockville to CGLIC in Chicago.

The MIA ruled that the policy for Emmes Corp. was “delivered or issued for delivery” in Maryland, meaning it had jurisdiction.