# Insurance (GIN)

## Title 27. Unfair Trade Practices and Other Prohibited Practices

### Subtitle 3. Unfair Claim Settlement Practices

#### Section 27-305

(a) The Commissioner may impose a penalty:

  (1) not exceeding $2,500 for each violation of Sec. 27-303 of this subtitle or a regulation adopted under Sec. 27-303 of this subtitle; and

  (2) not exceeding $125,000 for each violation of Sec. 27-303(9) of this subtitle or a regulation adopted under Sec. 27-303(9) of this subtitle.

(b) The penalty for a violation of Sec. 27-304 of this subtitle is as provided in Sec.Sec. 1-301, 4-113, and 4-114 of this article and Sec. 27-103 of this title.

(c)

  (1) On finding a violation of this subtitle, the Commissioner may require an insurer, nonprofit health service plan, or health maintenance organization to:

    (i) make restitution to each claimant who has suffered actual economic damage because of the violation; or

    (ii) provide to a claimant a payment that has been determined to be denied in violation of this subtitle.

  (2) Subject to paragraph (3) of this subsection, restitution may not exceed the amount of actual economic damage sustained, subject to the limits of any applicable policy.

  (3) For a violation of Sec. 27-303(9) of this subtitle, the Commissioner may require restitution to an insured for the following:

    (i) actual damages, which actual damages may not exceed the limits of any applicable policy;

    (ii) expenses and litigation costs incurred by the insured in pursuing an administrative complaint under Sec. 27-303(9) of this subtitle, including reasonable attorney's fees; and

    (iii) interest on all actual damages, expenses, and litigation costs incurred by the insured computed:

      (1) at the rate allowed under Sec. 11-107(a) of the Courts Article; and

      (2) from the date on which the insured's claim would have been paid if the insurer acted in good faith.

  (4) The amount of attorney's fees recovered from an insurer under paragraph (3) of this subsection may not exceed one-third of the actual damages recovered.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)