Titan Indemnity Co. of Cleveland, Ohio, was ordered to pay a $40,000 fine after violating Maryland laws on statements sent to policyholders and how those statements are sent, according to Maryland Insurance Administration records.

The MIA conducted an investigation into the company earlier this year and found several instances where the insurer was using language in its statements to policyholders that did not meet state legal requirements and in one case failed to mail notices properly.

The insurer admitted to the violations, according to MIA records.

Titan issued cancellation notices on 546 private passenger auto policies between Jan. 1., 2007, and Nov. 3, 2008, that included improper right of protest language. New language took effect Jan. 1, 2007, but Titan did not update its forms, according to the MIA.

Between June 11, 2007, and May 8, the date of the order, the company sent 425 notices of nonrenewal that failed to provide the actual reason for the cancellation in “clear and specific terms.” Most of the violations were remedied by Nov. 5, 2008, and the company agreed to be in full compliance by April 30.

Between June 11, 2007, and Nov. 13, 2008, the company sent 81 premium increase notices, indicating premiums would increase by more than 15%, that did not provide the actual reason for the increase in “clear and specific terms,” the MIA said.

Exactly 44 of the 81 increase notices were on duplicate policies numbers or the policyholder did not make the increased premium payments, the MIA found. The MIA forced Titan to pay $10,128.95 in premium and $458.85 in interest to 37 policyholders who paid the increase despite the illegal language.

Between June 20076 and Jan. 22, Titan sent 37,101 notices of cancellation for nonpayment of premium to 13,194 policyholders by certificate of bulk mail, which violates state law.