# Insurance (GIN)

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

### Subtitle 7. Unauthorized Insurers False Advertising Process Act

#### Section 27-701

In this subtitle, "resident" includes a domestic, alien, or foreign person, partnership, or corporation.

#### Section 27-702

(a)

  (1) The General Assembly declares that it is in the interest of citizens of the State who buy insurance from unauthorized insurers that solicit business in the State by placing in or sending into the State false advertising designed to induce residents of the State to buy insurance from them, that those unauthorized insurers be subject to this subtitle.

  (2) The purpose of this subtitle is to subject to the jurisdiction of the Commissioner and the courts of the State those unauthorized insurers described in paragraph (1) of this subsection.

  (3) In furtherance of this State interest, the General Assembly provides a method of substituted service of process on those unauthorized insurers described in paragraph (1) of this subsection.

  (4) The General Assembly declares that by enacting this subtitle, the General Assembly is exercising:

    (i) its power to protect the residents of the State; and

    (ii) its powers and privileges under the McCarran-Ferguson Act, 15 U.S.C. Sec.Sec. 1011 through 1015.

(b) The authority provided in this subtitle is in addition to any other powers of the State.

(c) This subtitle shall be construed liberally.

#### Section 27-703

An unauthorized foreign insurer or unauthorized alien insurer may not make, issue, circulate, or cause to be made, issued, or circulated to residents of the State an estimate, illustration, circular, pamphlet, or letter, or cause to be made in a newspaper, magazine, or other publication or over a radio or television station an announcement or statement to residents that misrepresents the insurer's financial condition, the terms of or benefits or advantages promised by insurance contracts issued or to be issued, or the dividends or share of the surplus to be received on the insurance contracts in violation of this title.

#### Section 27-704

(a)

  (1) If the Commissioner has reason to believe that an unauthorized foreign insurer or unauthorized alien insurer is engaging in unlawful advertising in violation of Sec. 27-703 of this subtitle, the Commissioner shall give notice of the violation by certified mail, or by electronic means in accordance with Sec. 2-116 of this article, to the insurer and the insurance supervisory official of the domiciliary state of the insurer.

  (2) For purposes of this section, the domiciliary state of an alien insurer is deemed to be the state of entry or the state of the principal office of the alien insurer in the United States.

(b) If, after 30 days after the Commissioner gives notice under subsection (a) of this section, the insurer continues to violate Sec. 27-703 of this subtitle, the Commissioner shall take action against the insurer under this title if the Commissioner believes that:

  (1) a proceeding by the Commissioner with respect to a violation of Sec. 27-703 of this subtitle would be in the public interest; and

  (2) the insurer is:

    (i) issuing or delivering insurance contracts to residents of the State;

    (ii) collecting premiums on the insurance contracts; or

    (iii) doing any of the acts listed in Sec. 27-705 of this subtitle.

#### Section 27-705

(a) An unauthorized foreign insurer or unauthorized alien insurer is deemed to have appointed the Commissioner to be the attorney of the unauthorized insurer for purposes of service of statements of charges, notices, and process in a proceeding instituted under this title for a misrepresentation set forth in Sec. 27-703 of this subtitle or in a proceeding for the recovery of a penalty under this title and to have agreed that service on the Commissioner has the same legal effect as personal service in the State on the unauthorized insurer if the unauthorized insurer in the State, by mail or otherwise:

  (1) issues or delivers insurance contracts to residents of the State;

  (2) solicits applications for insurance contracts;

  (3) collects premiums, membership fees, assessments, or other consideration for insurance contracts; or

  (4) transacts any other insurance business.

(b)

  (1) Service of statements of charges and notices under this title shall be made by a deputy or employee of the Administration by delivering to and leaving with the Commissioner or an individual in apparent charge of the office of the Commissioner two copies of the statement of charges or notice.

  (2) Service of process issued by a court in a proceeding to collect a penalty under this title shall be made by delivering to and leaving with the Commissioner or an individual in apparent charge of the office of the Commissioner two copies of the process.

  (3) Immediately after receipt of a statement of charges, notice, or process, the Commissioner shall cause one copy of the statement of charges, notice, or process to be sent by certified mail to the unauthorized insurer at its last known principal place of business.

  (4) Service of statements of charges, notices, or process under this subsection is sufficient if:

    (i) the statement of charges, notice, or process is mailed as provided in paragraph (3) of this subsection; and

    (ii) on or before the date that the unauthorized insurer is required to appear or within any further time that may be allowed, the following items are filed with the Commissioner, in the case of a statement of charges or notice, or with the clerk of the court in which the action is pending, in the case of process:

      (1) the unauthorized insurer's receipt, or the receipt issued by the United States Postal Service, showing the name of the sender of the letter and the name and address of the addressee; and

      (2) an affidavit of the individual who did the mailing showing compliance with paragraph (1) of this subsection.

  (5) The Commissioner shall keep a record of all statements of charges, notices, and process served on the Commissioner under this subsection.

(c) As an alternative to service under subsection (b) of this section, service of statements of charges, notices, or process is valid if:

  (1) service is made on any person in the State that, on behalf of the unauthorized insurer:

    (i) solicits insurance in the State;

    (ii) makes, issues, or delivers an insurance contract in the State; or

    (iii) collects or receives in the State a premium for insurance;

  (2) within 10 days after service under item (1) of this subsection, a copy of the statement of charges, notice, or process is sent by certified mail by or on behalf of the Commissioner to the unauthorized insurer at its last known principal place of business; and

  (3) on or before the date that the unauthorized insurer is required to appear or within any further time that the court allows, the following items are filed with the Commissioner, in the case of a statement of charges or notice, or with the clerk of the court in which the action is pending, in the case of process:

    (i) the unauthorized insurer's receipt, or the receipt issued by the United States Postal Service, showing the name of the sender of the letter and the name and address of the addressee; and

    (ii) an affidavit of the individual who did the mailing showing compliance with item (1) of this subsection.

(d) A cease or desist order, judgment by default, or judgment by confession under this section may not be entered until the expiration of 30 days after the date of the filing of the affidavit of compliance.

(e)

  (1) Service of process and notice under this article is in addition to all other methods of service provided by law.

  (2) This article does not limit or prohibit the right to serve any statement of charges, notice, or process on an insurer in any other manner authorized by law.

#### Section 27-706

This subtitle is the Unauthorized Insurers False Advertising Process Act.

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