The commission of an act prohibited under this subtitle is defined as an unfair method of competition and an unfair and deceptive act or practice in the business of insurance.

A person may not: make, issue, circulate, or cause to be made, issued, or circulated an estimate, circular, or statement that misrepresents the terms of a policy issued or to be issued, the benefits or advantages promised by the policy, or the dividends or share of the surplus to be received on the policy; make a false or misleading statement about the dividends or share of the surplus previously paid on similar policies; make a misleading representation or any misrepresentation about the financial condition of an insurer or about the legal reserve system on which a life insurer operates; or use a name or title of a policy or class of policies that misrepresents the true nature of the policy or class of policies.

A person may not make, publish, disseminate, circulate, place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or poster, over a radio or television station, or in any other way, an advertisement, announcement, or statement that contains an assertion, representation, or statement about the business of insurance or about a person in the conduct of the person’s insurance business that is untrue, deceptive, or misleading.

A person may not make, publish, disseminate, or circulate, directly or indirectly, or aid, abet, or encourage the making, publishing, disseminating, or circulating of an oral or written statement or a pamphlet, circular, article, or literature that: is false or maliciously critical of or derogatory to the financial condition of an insurer or person proposing to become an insurer; and is calculated to injure a person engaged in or proposing to engage in the business of insurance.

A person may not knowingly file with a supervisory or other public official, make, publish, disseminate, circulate, deliver to another person, place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, delivered to another person, or placed before the public a false statement of the financial condition of an insurer. A person may not: make a false entry in a book, report, or statement of an insurer with intent to deceive an agent or examiner lawfully appointed to examine the condition or affairs of the insurer or a public official to whom the insurer is required by law to report or who has authority by law to examine the condition or affairs of the insurer; or with intent to deceive, willfully omit to make a true entry of a material fact about the business of the insurer in a book, report, or statement of the insurer.

A person may not enter into an agreement to commit, or by concerted action commit, an act of boycott, coercion, or intimidation that results in or tends to result in unreasonable restraint of or monopoly in the business of insurance.

A person may not issue, deliver, or allow an agent, officer, or employee of the person to issue or deliver agency company stock or other capital stock, benefit certificates or shares in a corporation, or an advisory board contract or other similar contract that promises returns and profits as an inducement to insurance.

A person may not make or allow unfair discrimination between individuals of the same class and equal expectation of life in: the rates charged for a contract of life insurance or an annuity contract; the dividends or other benefits payable on a contract of life insurance or an annuity contract; or any of the other terms or conditions of a contract of life insurance or an annuity contract. Notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for contracts of life insurance or annuity contracts for a reason based on the blindness or other physical handicap or disability of an applicant or policyholder. Actuarial justification for the differential may be considered for a physical handicap or disability other than blindness or hearing impairment. Unless there is actuarial justification, an insurer may not refuse to insure or make or allow a differential in ratings, premium payments, or dividends in connection with life insurance and annuity contracts solely because the applicant or policyholder has the sickle–cell trait, thalassemia–minor trait, hemoglobin C trait, Tay–Sachs trait, or a genetic trait that is harmless in itself. With respect to a life insurance contract, an insurer may not refuse to insure, refuse to continue to insure, limit the amount or extent or kind of coverage available to an individual, or charge an individual a different rate for the same coverage solely for reasons associated with an applicant’s or insured’s past lawful travel experiences. Except as provided in subparagraph (ii) of this paragraph, with respect to a life insurance contract, an insurer may not refuse to insure, refuse to continue to insure, limit the amount or extent or kind of coverage available to an individual, or charge an individual a different rate for the same coverage solely for reasons associated with an applicant’s or insured’s future lawful travel. Subparagraph (i) of this paragraph does not prohibit an insurer from excluding or limiting coverage of specific future lawful travel, or charging a differential rate for such coverage, when bona fide differences in risk or exposure have been substantiated by the use of relevant data from at least one independent reliable source, including statistical or other mathematical analysis of available data that establishes a material variation in actual or reasonably anticipated experience that correlates to the risk of specific future lawful travel. Travel advisories issued by the United States Department of State do not qualify as the sole source of data for purposes of this subparagraph. An insurer shall: maintain the data and documents that support the insurer’s determination that bona fide differences in risk or exposure exist; and make the data and documents available on request by the Commissioner. A person may not make or allow unfair discrimination between individuals of the same class and of essentially the same hazard: in the amount of premium, policy fees, or rates charged for a policy or contract of health insurance; in the benefits payable under a policy or contract of health insurance; in any of the terms or conditions of a policy or contract of health insurance; or in any other manner. Notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for a reason based on the sex of an applicant or policyholder unless there is actuarial justification for the differential. Except as provided in § 27-909 of this title and notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for contracts of health insurance for a reason based on the blindness or other physical handicap or disability of an applicant or policyholder. Except as provided in § 27-909 of this title, actuarial justification for the differential may be considered for a physical handicap or disability other than blindness or hearing impairment.

Except as otherwise expressly provided by law, a person, including a health maintenance organization, may not knowingly: allow, make, or offer to make a contract of life insurance or health insurance or an annuity contract or an agreement as to the contract other than as plainly expressed in the contract; pay, allow, give, or offer to pay, allow, or give directly or indirectly as an inducement to the insurance or annuity: a rebate of premiums payable on the contract; a special favor or advantage in the dividends or other benefits under the contract; paid employment or a contract for services of any kind; or any valuable consideration or other inducement not specified in the contract; directly or indirectly give, sell, purchase, offer or agree to give, sell, or purchase, or allow as inducement to the insurance or annuity or in connection with the insurance or annuity, regardless of whether specified in the policy or contract, an agreement that promises returns and profits, or stocks, bonds, or other securities, or a present or contingent interest in or measured by stocks, bonds, or other securities, of an insurer or other corporation, association, or partnership, or dividends or profits accrued or to accrue on stocks, bonds, or other securities; or offer, promise, or give any valuable consideration not specified in the contract, except for educational materials, promotional materials, or articles of merchandise that cost no more than $50. A person may not make receipt of any educational materials, promotional materials, or articles of merchandise under subsection (a)(4) of this section contingent on the sale or purchase of insurance. This section does not prohibit an insurer, a nonprofit health service plan, or a health maintenance organization from offering or providing products or services in conjunction with a policy at no charge or at a discounted price if: the products or services are offered or provided to educate persons regarding, or to assess, monitor, control, or prevent, risk of loss to persons; and the risk of loss to persons is associated with risks insured against by the policy or insurance or annuity contract; or the products or services are: substantially related to the insurance provided under the policy or contract; or offered or provided to enhance the health of the insured or beneficiary; and the offer or provision of products or services is available to all policyholders that have purchased the policy or contract associated with the offer or provision. An insurer, a nonprofit health service plan, or a health maintenance organization may include an offer or a provision of products or services under this subsection in an applicable contract or form or rate filing. If the offer or provision of specific products or services under this subsection is included in any policy of insurance, health maintenance organization contract, nonprofit health service plan, or annuity contract, the products or services may not be discontinued during the term of the policy or contract unless discontinuation of the product or services is: consented to in writing by the policyholder; or the result of a uniform modification under § 15–1212, § 15–1309, or § 15–1409 of this article. This paragraph does not prohibit a carrier from terminating a contract as otherwise authorized under this article. An insurer, a nonprofit health service plan, or a health maintenance organization may not increase the premium or deny a claim of a policyholder if the policyholder accepts, rejects, uses, or fails to use a product or service under this subsection. Subject to subparagraph (ii) of this paragraph, the Commissioner may determine by regulation the types of products or services that meet the criteria in paragraph (1) of this subsection. A product or service offered or provided in conjunction with an insurance policy or annuity contract that is primarily designed to enhance financial wellness shall be allowed if the Commissioner determines that the product or service includes an enhancement to the financial protection component of the insurance policy or annuity contract.

Sections 27–208 and 27–209 of this subtitle may not be construed to include within the definition of discrimination or rebates any of the practices set forth in this section. For a contract of life insurance or an annuity contract, it is not discrimination or a rebate to pay bonuses to policyholders or otherwise abate their premiums wholly or partly out of the surplus accumulated from nonparticipating insurance, if the bonuses or abatement of premiums is fair, equitable to, and in the best interest of policyholders. For policies of life insurance or health insurance issued on the industrial debit, preauthorized check, bank draft, or similar plans, it is not discrimination or a rebate to make an allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer or by preauthorized check, bank draft, or similar plans in an amount that fairly represents the savings in collection expense. It is not discrimination or a rebate to readjust the rate of premium for a group policy based on the loss or expense experience under the policy, at the end of any policy year, retroactive only for that policy year. It is not discrimination or a rebate to reduce the premium rate for policies of large amount, if the reduction does not exceed savings in issuance and administrative expenses reasonably attributable to policies of large amount as compared with policies of similar plan issued in smaller amounts. It is not discrimination or a rebate to issue policies of life insurance or health insurance or annuity contracts on a salary savings or payroll deduction plan or other distribution plan at a reduced rate reasonably commensurate with the savings made by use of the plan. It is not discrimination or a rebate to issue policies of health insurance that provide for increases in benefits to policyholders who maintain their policies continuously in force without lapse for specified periods. In this subsection, “wellness program” means a program that: meets the requirements of a participatory wellness program or a health–contingent wellness program under § 15–509 of this article; and is provided as a benefit outside of the health insurance or health maintenance organization contract. It is not discrimination or a rebate for a carrier to provide reasonable incentives to an individual who is an insured, a subscriber, or a member for participation in a wellness program offered by the carrier. Any incentive offered for participation in a wellness program: shall be reasonably related to the wellness program; and may not have a value that exceeds any limit established in regulations adopted by the Commissioner. The Commissioner shall adopt regulations to implement the provisions of this subsection.

This section does not apply to: insurance on the life of a debtor in connection with a specific loan or other credit transaction; insurance on a debtor that provides indemnity for payments that are due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy; or life insurance or an annuity used to fund a pre-need contract as defined in § 7-101 of the Health Occupations Article or a preneed burial contract as defined in § 5-701 of the Business Regulation Article. An insurer may not directly or indirectly, or by an insurance producer or representative of the insurer, participate in a plan to offer or effect a kind or kinds of life insurance, health insurance, or annuities in the State as an inducement to, or in combination with, the purchase by the public of goods, securities, commodities, services or subscriptions to periodicals.

This section does not apply to life insurance, health insurance, and annuities. Except to the extent provided for in an applicable filing with the Commissioner as provided by law, an insurer, employee or representative of an insurer or insurance producer may not pay, allow, give, or offer to pay, allow, or give directly or indirectly as an inducement to insurance or after insurance has become effective: a rebate, discount, abatement, credit, or reduction of the premium stated in the policy; a special favor or advantage in the dividends or other benefits to accrue on the policy; or any valuable consideration or other inducement not specified in the policy. An insured named in a policy or an employee of the insured may not knowingly receive or accept directly or indirectly a rebate, discount, abatement, credit, reduction of premium, special favor, advantage, valuable consideration, or inducement described in subsection (b) of this section. Except as otherwise provided by law, a person may not knowingly offer, promise, or give any valuable consideration not specified in the policy, except for educational materials, promotional materials, or articles of merchandise that cost no more than $50. A person may not make receipt of any educational materials, promotional materials, or articles of merchandise under this subsection contingent on the sale or purchase of insurance. An insurer may not make or allow unfair discrimination between insureds or properties having like insuring or risk characteristics in: the premium or rates charged for insurance; the dividends or other benefits payable on the insurance; or any of the other terms or conditions of the insurance. Notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for a reason based on the sex, physical handicap, or disability of an applicant or policyholder unless there is actuarial justification for the differential. This section does not prohibit an insurer from: paying commissions or other compensation to licensed insurance producers; paying commissions to licensed insurance producers on a variable basis on policies issued to qualified exempt commercial policyholders, as defined in § 11–206 of this article, if: the payment of the commission to the insurance producer on a variable basis results in a lower total cost of the policy to the qualified exempt commercial policyholder; and the insurance producer receiving the commission has agreed to the specific level of commission to be paid on the policy; allowing or returning to its participating policyholders, members, or subscribers lawful dividends, savings, or unabsorbed premium deposits; or offering or providing products or services in conjunction with a policy at no charge or at a discounted price to educate a person regarding, or to assess, monitor, control, or prevent, risk of loss to persons or property if: the risk of loss to persons or property is associated with the risks insured against by the policy; and the offer or provision of products or services is available to all policyholders that have purchased the policy associated with the offer or provision. An insurer may include in an applicable contract or form or rate filing an offer or a provision of products or services under this subsection. An insurer may not increase the premium or deny a claim of a policyholder if the policyholder accepts, rejects, uses, or fails to use a product or service under this subsection. The Commissioner may determine by regulation the types of products or services that meet the criteria in paragraph (1)(iv) of this subsection.

A person may not make, issue, or cause to be made or issued an oral or written statement that misrepresents or makes incomplete comparisons about the terms, conditions, or benefits contained in a policy for the purpose of inducing or attempting or tending to induce the policyholder to forfeit, surrender, retain, exchange, or convert a policy or allow a policy to lapse.

A person may not require another person to buy insurance through a particular insurance producer or insurer as a condition, agreement, or understanding with respect to selling or providing a loan, credit, sale, goods, property, contract, lease, or service to the other person. An insurance producer or insurer may not participate in a combination plan or transaction prohibited by paragraph (1) of this subsection. A person may not solicit the combination of insurance and other matters prohibited by subsection (a) of this section. An insurance producer or insurer may not participate in a plan of public solicitation of the combination of insurance and other matters prohibited by subsection (a) of this section. This subsection does not prohibit a person from being an insurance producer and engaging in another business at the same time or place if: the sales of insurance and other matters are not combined or coerced as prohibited by subsection (a) of this section; and the buyer or other person has the free choice of insurance. Violation of this section does not invalidate any contract or transaction. Notwithstanding a combination contract, tying agreement, understanding, or condition to the contrary, the person required to buy or pay for insurance or to bid ex–insurance may substitute at any time other insurance from insurance producers or insurers chosen by the person, or may decline further insurance coverage if the insurance is other than to protect the interest of a lender, property owner, or other person.

An insurer may retain, invest in, or acquire all or part of the capital stock of another insurer or have common management with another insurer, unless the retention, investment, acquisition, or common management is inconsistent with another provision of this article or causes the business of the insurers with the public to be conducted in a manner that substantially lessens competition generally in the insurance business or tends to create a monopoly in the insurance business. An individual otherwise qualified may be director of two or more insurers that are competitors, unless the effect substantially lessens competition between insurers generally or tends materially to create a monopoly.

A person may not willfully collect a premium or charge for insurance if the insurance is not then provided, or is not in due course to be provided subject to acceptance of the risk by the insurer, in a policy issued by an insurer as authorized by this article. A person may not willfully collect a premium or charge for insurance that: exceeds or is less than the premium or charge applicable to that insurance under the applicable classifications and rates as filed with and approved by the Commissioner; or if classifications, premiums, or rates are not required by this article to be filed with and approved by the Commissioner, exceeds or is less than the premium or charge specified in the policy and set by the insurer. Paragraph (1) of this subsection does not prohibit: a surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article from charging and collecting applicable State and federal taxes in addition to the required premium; a life insurer from charging and collecting the amount actually expended for a medical examination of an applicant for life insurance or reinstatement of a policy of life insurance; an insurance producer from charging a fee, not exceeding 15% of the premium, for services rendered in placing insurance in an insurer if commissions are not payable by the insurer; an insurer from paying commissions to licensed insurance producers on a variable basis on policies issued to qualified exempt commercial policyholders, as defined in § 11–206 of this article, if: the payment of the commission to the insurance producer on a variable basis results in a lower total cost of the policy to the qualified exempt policyholder; and the insurance producer receiving the commission has agreed to the specific level of commission to be paid on the policy; or a fund producer from charging and collecting, as actual expenses incurred in placing automobile insurance with the Maryland Automobile Insurance Fund: a maximum charge of $25 plus $1 more than the actual charge by the Motor Vehicle Administration for a driving record required to be presented with the application, unless otherwise provided by the Fund; or the amount provided in subsection (e) of this section. Subject to subparagraphs (ii), (iii), (iv), and (v) of this paragraph, paragraph (1) of this subsection does not prohibit an authorized insurer or the Maryland Automobile Insurance Fund from charging and collecting, if approved by the Commissioner, reasonable installment fees or reasonable fees for late payment of premiums by policyholders or both. The Commissioner: shall review administrative expenses submitted by an authorized insurer or the Maryland Automobile Insurance Fund that are associated with late payments or installment payments, including the cost incurred by an authorized insurer or a vendor of the authorized insurer to accept late payments or installment payments by credit card, debit card, electronic funds transfer, or electronic check payment; and may approve a late fee or installment fee not to exceed $10. A late fee may not be imposed: during any grace period required by law or regulation on a policy of insurance; or if no grace period is required by law or regulation on a policy of insurance, until 2 business days after the date the payment amount becomes due. An authorized insurer or the Maryland Automobile Insurance Fund shall credit each payment received from an insured to the premium owed by the insured before crediting the payment to a late fee or installment fee owed by the insured. A policy of insurance may not be canceled for the failure to pay a single late fee or single installment fee. Subject to subparagraphs (ii) and (iii) of this paragraph, paragraph (1) of this subsection does not prohibit an insurance producer from charging and collecting from an insured actual expenses incurred by the insurance producer for payment of the premium for a policy by use of a credit card. Any point of service credit card expenses may not be considered premium for any purpose under this paragraph. An insurance producer that accepts alternative payment methods for premiums shall disclose fully to the insured or prospective insured: the availability of all payment methods accepted by the insurer or insurance producer; and any charge for actual expenses incurred by the insurance producer for payment of a premium by use of a credit card. Paragraph (1) of this subsection does not prohibit an authorized motor vehicle insurer or the Maryland Automobile Insurance Fund from charging and collecting a reasonable fee approved by the Commissioner under subparagraph (iii) of this paragraph for the reinstatement of a private passenger motor vehicle liability insurance policy in accordance with § 19–519 of this article. Paragraph (1) of this subsection does not prohibit a licensed insurance producer or a fund producer from charging and collecting a reasonable fee approved by the Commissioner under subparagraph (iii) of this paragraph for the reinstatement of a private passenger motor vehicle liability insurance policy in accordance with § 19–519 of this article. The Commissioner: shall review the administrative expenses submitted by an authorized motor vehicle insurer or the Maryland Automobile Insurance Fund that are associated with reinstatements under § 19–519 of this article; and may approve a reinstatement fee not to exceed: $10 to be charged and collected by the insurer or the Fund; and $15 to be charged and collected by the insurance producer or the fund producer. An insurer may not raise the policy limits of coverage, if the effect could be an increase in the premium without the prior consent of the insured. Notwithstanding subsection (a) of this section, a surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article may charge a reasonable policy fee on a policy issued by a surplus lines insurer to an exempt commercial policyholder, as defined in § 11–206(j) of this article. Notwithstanding subsection (a) of this section, a surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article may charge a reasonable policy fee on a policy issued by a surplus lines insurer not exceeding: $200 on each personal lines policy procured by a licensed insurance producer not affiliated with or controlled by the surplus lines broker and to whom the surplus lines broker pays a commission; or $500 or 7% of the policy premium, whichever is greater, on each commercial lines policy procured by a licensed insurance producer not affiliated with or controlled by the surplus lines broker and to whom the surplus lines broker pays a commission. A surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article and a license as an insurance producer under Title 10, Subtitle 1 of this article may charge a reasonable policy fee on a policy issued by an authorized insurer not exceeding $500 or 7% of the policy premium, whichever is greater, on each commercial lines policy procured by a licensed insurance producer not affiliated with or controlled by the surplus lines broker and to whom the surplus lines broker pays a commission. The policy fee charged in accordance with this subsection must be reasonably related to the cost of underwriting, issuing, processing, and servicing the policy by the surplus lines broker for the surplus lines insurer or the authorized insurer. Notwithstanding subsection (a) of this section, a surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article may recoup from the prospective insured the actual cost of an inspection required for the placement of surplus lines insurance with a surplus lines insurer if: the inspection is required by the surplus lines insurer; the cost of the inspection is actually incurred by the surplus lines broker and not retained by the surplus lines broker; and the cost of the inspection is documented and verifiable. A surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article and a license as an insurance producer under Title 10, Subtitle 1 of this article may recoup from the prospective insured the actual cost of an inspection required for the placement of insurance with an authorized insurer if: the inspection is required by the authorized insurer; the cost of the inspection is actually incurred by the surplus lines broker and not retained by the surplus lines broker; and the cost of the inspection is documented and verifiable. Regardless of the number of insurers participating on a risk: only one inspection fee may be charged to recoup the actual cost of an inspection under paragraphs (5) and (6) of this subsection for each policy or certificate of coverage; and only one policy fee may be charged under paragraph (2) or (3) of this subsection for each policy or certificate of coverage. Subject to subparagraph (ii) of this paragraph, a surplus lines broker that holds a certificate of qualification under Title 3, Subtitle 3 of this article may charge and collect from an insured actual expenses incurred by the surplus lines broker for payment of the premium, policy fee, and any other fees and taxes relating to the policy by use of a credit card. Any point of service credit card expenses may not be considered premium for any purpose under this paragraph. On a form approved by the Commissioner, the surplus lines broker shall: make a clear and conspicuous written disclosure of: any inspection fee; the total amount of the policy fee; the premium tax on the policy; any financial interest in the person performing the inspection, if applicable; whether the surplus lines broker will receive compensation from the person that performs the inspection; and any charge for actual expenses incurred by the surplus lines broker for payment of the premium, policy fee, and any other fees and taxes relating to the policy by use of a credit card; and notify the prospective insured of the option to obtain the inspection from another person who meets the requirements of or is approved by the surplus lines insurer. In this subsection, “accident history report” means a report that details an individual’s accident history. “Accident history report” includes a comprehensive loss underwriting exchange automobile report (CLUE report). “Accident history report” does not include a report that details an individual’s credit standing or history. The Maryland Automobile Insurance Fund may sponsor a fund producer or premium finance company registered under Title 23 of this article for the purpose of obtaining accident history reports directly from a person that provides accident history reports. When placing automobile insurance through the Fund, a fund producer or premium finance company sponsored by the Fund under this paragraph may obtain accident history reports directly from a person that provides accident history reports. Unless provided otherwise by the Fund, a person that provides accident history reports to a fund producer or premium finance company sponsored by the Fund under paragraph (2) of this subsection shall direct all billing for the reports to the fund producer or premium finance company. Subsection (b)(1) of this section does not prohibit a fund producer or premium finance company from charging and collecting actual expenses that are imposed by a person for providing accident history reports under this subsection in connection with the placement of automobile insurance through the Fund. In addition to any other sanction otherwise applicable, a person that violates subsection (b)(1) of this section with regard to a bail bond is subject to a penalty not exceeding $5,000 for each violation. In this subsection the following words have the meanings indicated. “Administrative service” means a service, other than a service related to the sale, solicitation, negotiation, or servicing of a health benefit plan, that an insurance producer provides to assist an employer in: complying with a statutory or regulatory requirement; providing an employee benefit on behalf of the employer; or performing functions related to the management of employees of the employer. “Health benefit plan” has the meaning stated in § 2–112.2 of this article. Notwithstanding subsection (a) of this section and subject to subparagraph (ii) of this paragraph, an insurance producer who is licensed under Title 10 of this article to sell health insurance may charge reasonable fees for an administrative service that is sold by the insurance producer to an employer. An insurance producer may not charge fees under this subsection for services that are: compensated by commissions or other compensation paid to the insurance producer by an insurer, nonprofit health service plan, or health maintenance organization related to a health benefit plan of an employer; or performed by the insurance producer acting as an administrator under Title 8, Subtitle 3 of this article or an adviser under Title 10, Subtitle 2 of this article. Before a fee for administrative services is charged, an insurance producer, on a form adopted by the Commissioner by regulation, shall disclose in a clear and conspicuous manner: each administrative service to be provided; the fee for each administrative service to be provided; and if the insurance producer sells a health benefit plan to the employer, the amount of commission or other compensation that the insurance producer will receive from an insurer, nonprofit health service plan, or health maintenance organization related to the health benefit plan. The disclosure form required under paragraph (3) of this subsection shall be: signed by the insurance producer and an authorized representative of the employer; and retained by the insurance producer as required by regulations adopted by the Commissioner.

This section does not apply to: life insurance; health insurance; annuity contracts; or a pooling arrangement by athletic clubs, charitable organizations, community associations, homeowners’ associations, and public entities under Title 19, Subtitle 6 of this article to purchase insurance under this section. An authorized insurer or unauthorized insurer may not make available to a firm, corporation, or association of individuals through a rating plan or form, property insurance, casualty insurance, or surety insurance at a preferred rate or premium based on a fictitious group of the firm, corporation, or association of individuals. A form or plan of insurance that covers a group or combination of persons or risks may not be written or delivered in or outside the State to cover persons or risks in the State at a preferred rate or on a form other than the rate or form offered to the public generally, including persons not in the group or combination, unless the form, plan of insurance, and rates or premiums to be charged have been submitted to and approved by the Commissioner as: not unfairly discriminatory; and not otherwise in conflict with subsection (b) of this section or, to the extent applicable, Title 11, Subtitle 2 of this article. The Commissioner shall adopt regulations to carry out subsection (c) of this section as it applies to property insurance or casualty insurance on motor vehicles.

All burial insurance benefits shall be paid in cash to the beneficiary. A person engaged in the business of burial insurance may not pay or contract to pay wholly or partly burial insurance or its benefits to: an official mortician, funeral director, or undertaker; a designated mortician, funeral director, undertaker, or funeral directing or undertaking concern; or a particular tradesperson or businessperson. This section does not apply to life insurance or an annuity used to fund a pre-need contract as defined in § 7-101 of the Health Occupations Article or a preneed burial contract as defined in § 5-701 of the Business Regulation Article.

A person that is not an insurer may not assume or use a name that deceptively implies or suggests that it is an insurer.

An insurance producer or insurer may not refer an individual employee or dependent of an employee to the Maryland Children’s Health Program established under Title 15, Subtitle 3 of the Health - General Article or arrange for an individual employee or dependent of an employee to apply for the Maryland Children’s Health Program established under Title 15, Subtitle 3 of the Health - General Article if the insurance producer or insurer has an economic interest in the referral or the arrangement and the insurance producer’s or insurer’s sole purpose is to separate that employee or that employee’s dependent from group health insurance coverage provided in connection with the employee’s employment.

In this section the following words have the meanings indicated. “Carrier” means a person that is: an insurer that holds a certificate of authority in the State and provides health insurance in the State; a health maintenance organization that holds a certificate of authority to operate in the State; or a nonprofit health service plan that holds a certificate of authority to operate in the State. “Health coverage” means any of the following: a health insurance contract that is issued or delivered in the State by an insurer; a contract that is issued or delivered in the State by a nonprofit health service plan; or a contract that is issued or delivered in the State by a health maintenance organization. “Health status-related factor” has the meaning stated in § 15-1301 of this article. “Individual contract” means a contract between a carrier and an individual covering: the individual; the individual and the individual’s family members; or the family members of the individual. “Reunderwrite” means to reevaluate any health status-related factor, occupation, hobby, or activity of an individual for the purpose of: terminating health coverage of the individual; or moving the individual from a more favorable rate class to a less favorable rate class. “Reunderwrite” does not include: moving an individual from one rate tier to another rate tier solely due to the addition or deletion of a family member under the health coverage; increasing the premium under an attained age rated contract solely due to the increasing age of the individual covered under the health coverage; on receipt of an application from an insured to increase the benefits under an existing contract, evaluating the health status-related factors, occupation, hobbies, or activities of the insured for the purpose of increasing the benefits under the contract; or during the period in which a carrier has the right to contest a policy, denying a claim, amending the policy, making an adjustment to the premium, or rescinding the policy based on a material misrepresentation or fraud in the application. A carrier may not reunderwrite an individual for health coverage under an individual contract after the individual contract has been issued.

A person may not violate § 15–112(h) of this article.

It is unlawful for any insurance producer to use a senior or retiree credential or designation in a way that is or would be misleading in connection with the offer, sale, or purchase of life insurance, health insurance, or annuities. The Commissioner, in consultation with the Securities Commissioner of the Division of Securities in the Office of the Attorney General, shall adopt regulations to define what constitutes a misleading use of a senior or retiree credential or designation for purposes of subsection (a) of this section. The regulations adopted by the Commissioner may provide exemptions from subsection (a) of this section, if the exemptions are consistent with the public interest and within the purposes intended by the policy and provisions of this title. A violation of subsection (a) of this section constitutes a lack of trustworthiness for the purposes of § 10–126(a)(13) of this article. This section may not be construed to limit any powers of the Commissioner granted under this title.

When soliciting or advertising the sale of a Medicare Advantage Plan, Medicare Advantage Prescription Drug Plan, Medicare Prescription Drug Plan (Part D), or Medicare Section 1876 cost plan, an insurance producer shall comply with the Centers for Medicare and Medicaid Services’ Medicare Marketing Guidelines, as may be amended from time to time, including the prohibitions against: engaging in door–to–door solicitation, including leaving written information at a residence or on a vehicle; approaching a Medicare beneficiary in a common area, including a parking lot, hallway, lobby, or sidewalk; and engaging in telephone or electronic solicitation.

In this section “bail bond” has the meaning stated in § 10–301 of this article. A confessed judgment clause that waives a consumer’s right to assert a legal defense to an action may not be included in a bail bond agreement.