§ 27–303
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 27-303 (2026)
Title 27. Unfair Trade Practices and Other Prohibited Practices
Subtitle 3. Unfair Claim Settlement Practices
§ 27–303LinkCopy Citation
It is an unfair claim settlement practice and a violation of this subtitle for an insurer, nonprofit health service plan, or health maintenance organization to:
(1)
misrepresent pertinent facts or policy provisions that relate to the claim or coverage at issue;
(2)
refuse to pay a claim for an arbitrary or capricious reason based on all available information;
(3)
attempt to settle a claim based on an application that is altered without notice to, or the knowledge or consent of, the insured;
(4)
fail to include with each claim paid to an insured or beneficiary a statement of the coverage under which payment is being made;
(5)
fail to settle a claim promptly whenever liability is reasonably clear under one part of a policy, in order to influence settlements under other parts of the policy;
(6)
fail to provide promptly on request a reasonable explanation of the basis for a denial of a claim;
(7)
fail to meet the requirements of Title 15, Subtitle 10B of this article for preauthorization for a health care service;
(8)
fail to comply with the provisions of Title 15, Subtitle 10A of this article;
(9)
fail to act in good faith, as defined under § 27–1001 of this title, in settling a first–party claim under a policy of property and casualty insurance; or
(10)
fail to comply with the provisions of § 16–118 of this article.