Insurers fined for axing US state.
Maryland regulators also ordered the company to continue providing cover for state properties, including the Baltimore-Washington International Airport.
In a 75 page ruling, the Maryland Insurance Administration, which oversees insurance companies operating in the state, said Royal & SunAlliance did not give proper notice or reasons for cancelling the state's policy.
The order states that Royal & SunAlliance USA Inc, the American affiliate of the British firm, must write another insurance policy by next Tuesday and pay the fine.
Royal & SunAlliance said it followed all the rules in dropping the state's coverage in February, when the policy was due to expire.
``We are disappointed by the ruling,'' said spokesman Kedar Bryan.
``Royal & SunAlliance decided not to renew the policy because it could no longer underwrite the level of coverage previously written for the state of Maryland,'' he added.