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<section article="gin" article_name="Insurance" number="27-305" title_number="27" title_name="Unfair Trade Practices and Other Prohibited Practices" subtitle_number="3" subtitle_name="Unfair Claim Settlement Practices">
  <level label="a">
    <text>The Commissioner may impose a penalty:</text>
    <level label="1">
      <text>not exceeding $2,500 for each violation of § 27–303 of this subtitle or a regulation adopted under § 27–303 of this subtitle; and</text>
    </level>
    <level label="2">
      <text>not exceeding $125,000 for each violation of § 27–303(9) of this subtitle or a regulation adopted under § 27–303(9) of this subtitle.</text>
    </level>
  </level>
  <level label="b">
    <text>The penalty for a violation of § 27–304 of this subtitle is as provided in §§ 1–301, 4–113, and 4–114 of this article and § 27–103 of this title.</text>
  </level>
  <level label="c">
    <level label="1">
      <text>On finding a violation of this subtitle, the Commissioner may require an insurer, nonprofit health service plan, or health maintenance organization to:</text>
      <level label="i">
        <text>make restitution to each claimant who has suffered actual economic damage because of the violation; or</text>
      </level>
      <level label="ii">
        <text>provide to a claimant a payment that has been determined to be denied in violation of this subtitle.</text>
      </level>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
    <level label="3">
      <text>For a violation of § 27–303(9) of this subtitle, the Commissioner may require restitution to an insured for the following:</text>
      <level label="i">
        <text>actual damages, which actual damages may not exceed the limits of any applicable policy;</text>
      </level>
      <level label="ii">
        <text>expenses and litigation costs incurred by the insured in pursuing an administrative complaint under § 27–303(9) of this subtitle, including reasonable attorney’s fees; and</text>
      </level>
      <level label="iii">
        <text>interest on all actual damages, expenses, and litigation costs incurred by the insured computed:</text>
        <level label="1">
          <text>at the rate allowed under § 11–107(a) of the Courts Article; and</text>
        </level>
        <level label="2">
          <text>from the date on which the insured’s claim would have been paid if the insurer acted in good faith.</text>
        </level>
      </level>
    </level>
    <level label="4">
      <text>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.</text>
    </level>
  </level>
</section>
