Twisting, as defined under Maryland insurance regulations, is a prohibited practice where an insurance producer induces a policyholder to lapse, forfeit, surrender, or convert an existing insurance policy to purchase another policy with the producer’s company or another company, based on incomplete or fraudulent comparisons of the two policies. The primary motivation behind twisting is typically the producer’s personal gain through commissions, rather than the policyholder’s best interest. Specific actions that constitute twisting include misrepresenting the benefits, advantages, conditions, or terms of any insurance policy; making misleading or incomplete comparisons of insurance policies to induce a policyholder to lapse, forfeit, surrender, retain, or convert any insurance policy; and using high-pressure sales tactics or deceptive practices to convince a policyholder to switch policies. Maryland Insurance Code, specifically Section 27-217, addresses unfair trade practices, including misrepresentation and false advertising of insurance policies. Violators of this section, including those engaging in twisting, may be subject to penalties such as fines, suspension or revocation of their insurance license, and other administrative actions deemed appropriate by the Maryland Insurance Administration. The severity of the penalty depends on the nature and extent of the violation.

Maryland requires licensed insurance producers to complete continuing education (CE) courses to maintain their licenses. The specific number of CE hours required varies depending on the license type, but generally, producers must complete a certain number of hours every two-year license term. These hours must include specific topics, such as ethics, Maryland law updates, and any specialized training related to the lines of authority held by the producer (e.g., life, health, property, casualty). Failure to meet the CE requirements can result in the suspension or revocation of the producer’s insurance license. Producers are typically given a grace period to complete the required hours, but penalties may still apply. The Maryland Insurance Administration (MIA) monitors compliance with CE requirements through various methods. Approved CE providers are required to report course completions directly to the MIA. The MIA also conducts audits of producer records to verify compliance. Producers are responsible for maintaining records of their completed CE courses and providing them to the MIA upon request. Maryland Insurance Code Section 10-116 outlines the continuing education requirements and the Commissioner’s authority to enforce these provisions.

The Maryland Life and Health Insurance Guaranty Corporation Act (Maryland Insurance Code, Title 9, Subtitle 3) was established to protect policyholders and beneficiaries in the event that a life or health insurance company becomes insolvent and is unable to meet its contractual obligations. The Act creates a safety net by providing a mechanism for the payment of covered claims. The Act covers direct life insurance policies, health insurance policies, annuity contracts, and supplemental contracts to these policies issued by member insurers licensed to do business in Maryland. However, it generally does not cover policies or contracts issued by fraternal benefit societies, HMOs (Health Maintenance Organizations), or self-funded employee benefit plans. The Act places limitations on the amount of coverage provided. For life insurance death benefits, the maximum coverage is generally \$300,000 per insured life. For health insurance benefits, the maximum coverage is generally \$500,000 for health benefit plans and \$300,000 for disability income insurance. For annuity contracts, the maximum coverage is generally \$250,000 per contract owner. These limits are designed to provide a reasonable level of protection while ensuring the financial stability of the Guaranty Corporation.

The process for handling consumer complaints against insurance companies in Maryland is overseen by the Maryland Insurance Administration (MIA). Consumers can file complaints with the MIA regarding issues such as claim denials, unfair settlement practices, policy cancellations, and premium disputes. The complaint must typically be submitted in writing, either online or by mail, and should include all relevant documentation, such as policy information, claim details, and correspondence with the insurance company. Upon receiving a complaint, the MIA reviews the information and may contact the insurance company to obtain their perspective on the matter. The MIA then investigates the complaint to determine whether the insurance company has violated any Maryland insurance laws or regulations. The MIA has the authority to mediate disputes between consumers and insurance companies and to issue orders requiring the insurance company to take corrective action. If a consumer is not satisfied with the outcome of the MIA’s investigation, they may have the right to pursue further legal action, such as filing a lawsuit against the insurance company. The Maryland Insurance Code provides consumers with various rights and remedies in cases of insurance disputes. Section 2-201 outlines the general powers and duties of the Commissioner, including the investigation of complaints.

Unfair discrimination in insurance, as defined by Maryland law, refers to the practice of charging different rates or denying coverage to individuals or groups based on arbitrary or discriminatory factors that are not directly related to the risk being insured. This is prohibited under Maryland Insurance Code Section 27-206, which specifically addresses unfair discrimination. Examples of practices that would be considered unfairly discriminatory include: charging different premiums based solely on race, religion, or national origin; denying coverage to individuals based solely on their sexual orientation or gender identity; or refusing to insure individuals living in certain geographic areas without a valid actuarial basis. The legal basis for prohibiting unfair discrimination in insurance is rooted in the principles of equal protection and fairness. Insurance is intended to provide a safety net for individuals and businesses, and discriminatory practices undermine this purpose by unfairly excluding certain groups from accessing coverage. By prohibiting unfair discrimination, Maryland law seeks to ensure that insurance is available to all residents on a fair and equitable basis.

Maryland law places specific restrictions on the use of credit information in underwriting and rating personal insurance policies. Insurers are permitted to use credit information as one factor among many in determining rates and eligibility, but they cannot base a decision solely on credit information. Maryland Insurance Code Section 27-905 outlines these regulations. Insurers must adhere to several consumer protections when using credit information. They must disclose to the applicant or policyholder that credit information will be used. If an adverse action, such as a denial of coverage or an increase in premium, is based in whole or in part on credit information, the insurer must provide the consumer with a notice of the adverse action, including the specific reasons for the action and information about how to obtain a free copy of their credit report. Furthermore, consumers have the right to dispute the accuracy of their credit information with the credit reporting agency. If a consumer believes that their credit information is inaccurate and provides documentation to the insurer, the insurer must re-underwrite or re-rate the policy based on the corrected information. These regulations aim to balance the insurer’s need to assess risk with the consumer’s right to fair and accurate treatment.

Maryland law sets forth specific requirements and limitations regarding the cancellation and nonrenewal of insurance policies to protect policyholders from arbitrary or unfair actions by insurers. The requirements vary depending on the type of insurance policy (e.g., auto, homeowners, life, health) and the reason for the cancellation or nonrenewal. In general, insurers must provide policyholders with advance written notice of cancellation or nonrenewal. The required notice period varies depending on the type of policy and the reason for the action, but it is typically at least 30 days. The notice must state the specific reason for the cancellation or nonrenewal and inform the policyholder of their right to appeal the decision to the Maryland Insurance Administration (MIA). If a policyholder believes that their policy was wrongfully cancelled or nonrenewed, they can file a complaint with the MIA. The MIA will investigate the complaint and determine whether the insurer complied with Maryland law. If the MIA finds that the insurer acted improperly, it may order the insurer to reinstate the policy or provide other appropriate relief. Maryland Insurance Code Sections 27-501 through 27-607 detail the specific requirements for cancellation and nonrenewal of various types of insurance policies.

The Maryland Insurance Code, in conjunction with the GLBA and Maryland’s data security laws, places stringent requirements on insurers regarding the handling of policyholder information. The GLBA mandates that financial institutions, including insurers, implement safeguards to protect consumer information. Maryland’s regulations amplify these requirements, often imposing stricter standards for data encryption, access controls, and incident response planning. In the event of a data breach, insurers face significant responsibilities under both federal and state laws. They must promptly notify affected policyholders, offering credit monitoring services where appropriate. Furthermore, they are obligated to investigate the breach, remediate vulnerabilities, and report the incident to the Maryland Insurance Administration. Failure to comply with these regulations can result in substantial penalties, including fines, sanctions, and legal action. Maryland Annotated Code, Insurance Article, Title 27 outlines specific data security requirements and breach notification protocols. The Maryland Insurance Administration actively enforces these provisions to protect consumer privacy and maintain the integrity of the insurance market.

The Maryland Insurance Administration (MIA) employs a rigorous process to assess the financial solvency of insurance companies, ensuring they can meet their obligations to policyholders. This involves continuous monitoring of financial performance through mandated reporting requirements, including annual and quarterly financial statements prepared in accordance with Statutory Accounting Principles (SAP). Key financial ratios scrutinized include the Risk-Based Capital (RBC) ratio, which measures an insurer’s capital adequacy relative to its risk profile; the loss ratio, indicating the proportion of premiums paid out in claims; and the expense ratio, reflecting operational efficiency. If the MIA identifies an insurer at risk of insolvency, it has broad authority under the Maryland Insurance Code to intervene. This can range from requiring the insurer to submit a corrective action plan to placing the company under supervision or even receivership. The MIA can also restrict the insurer’s ability to write new business, sell assets, or declare dividends. These actions are designed to protect policyholders and prevent further deterioration of the insurer’s financial condition. Maryland Annotated Code, Insurance Article, Title 5 details the powers and duties of the MIA regarding insurer solvency.

Maryland law strictly prohibits unfair claims settlement practices by insurers. These practices are defined broadly to encompass any action that unreasonably delays or denies legitimate claims. Examples of violations include failing to acknowledge communications regarding a claim within a reasonable timeframe, misrepresenting policy provisions to avoid coverage, failing to conduct a reasonable investigation of a claim, and refusing to pay a claim without conducting a reasonable investigation based upon all available information. Furthermore, unreasonably delaying the payment of a claim, compelling policyholders to institute litigation to recover amounts due under a policy by offering substantially less than the amounts ultimately recovered in litigation, and attempting to settle a claim for less than the amount to which a reasonable person would have believed he or she was entitled based upon written or printed advertising material accompanying the application are also considered unfair practices. Insurers found to have engaged in unfair claims settlement practices face a range of penalties, including fines, suspension or revocation of their license to operate in Maryland, and orders to pay restitution to affected policyholders. The Maryland Insurance Administration actively investigates complaints of unfair claims practices and takes enforcement action where warranted. Maryland Annotated Code, Insurance Article, § 27-303 specifically addresses unfair claim settlement practices.

Licensed insurance producers in Maryland are required to complete continuing education (CE) to maintain their licenses. The specific requirements vary depending on the type of license held, but generally, producers must complete a minimum number of credit hours every license term (typically two years). The Maryland Insurance Administration mandates specific subjects to be included in CE courses, such as ethics, Maryland insurance law and regulations, and topics related to specific lines of insurance (e.g., life, health, property, casualty). Failure to meet the CE requirements can result in the suspension or revocation of the producer’s license. Producers are typically given a grace period to complete the required hours, but penalties may still apply. The Maryland Insurance Administration closely monitors CE compliance and provides resources to help producers meet their obligations. Maryland Annotated Code, Insurance Article, § 10-116 outlines the continuing education requirements for insurance producers.

The Maryland Life and Health Insurance Guaranty Corporation provides a safety net for policyholders in the event that a life or health insurance company becomes insolvent and is unable to meet its obligations. Its purpose is to protect Maryland residents who hold life insurance policies, health insurance policies, annuity contracts, and supplemental contracts with insurers licensed in the state. The Guaranty Corporation is funded by assessments on solvent life and health insurance companies operating in Maryland. These assessments are based on a percentage of the premiums written by each insurer. The Guaranty Corporation covers various types of policies, including life insurance, health insurance, and annuities. However, there are limitations on the amount of coverage provided. For life insurance, the maximum coverage is typically \$300,000 in death benefits and \$100,000 in cash surrender value. For health insurance, the maximum coverage is typically \$500,000 for health benefit plans. For annuities, the maximum coverage is \$250,000 in present value of annuity benefits. Maryland Annotated Code, Insurance Article, Title 9, Subtitle 3 establishes and governs the Maryland Life and Health Insurance Guaranty Corporation.

Maryland law places restrictions on the use of credit information in underwriting and rating personal lines insurance policies, such as auto and homeowners insurance. Insurers are permitted to use credit information as one factor among many in determining rates and eligibility, but they cannot base a denial of coverage solely on credit information. Furthermore, insurers must adhere to specific guidelines regarding the use of credit scores, including obtaining consumer consent before accessing credit reports and providing clear disclosures about how credit information is used. If an insurer takes an adverse action (e.g., denying coverage or increasing rates) based in whole or in part on credit information, it must provide the consumer with a notice explaining the reasons for the action and informing them of their right to obtain a free copy of their credit report. Insurers are also prohibited from unfairly discriminating against consumers based on their credit history. Maryland Annotated Code, Insurance Article, § 27-901 through § 27-907 outlines the regulations governing the use of credit information in insurance underwriting and rating.

The Maryland Insurance Code includes provisions designed to prevent and detect insurance fraud. Insurers have a legal obligation to report suspected fraudulent activities to the Maryland Insurance Administration’s Insurance Fraud Division. This includes reporting instances of suspected fraud by policyholders, claimants, or even other insurance professionals. The reporting requirement is intended to help the state combat insurance fraud, which can drive up premiums for all consumers. Individuals who report suspected insurance fraud in good faith are afforded certain protections under Maryland law. These protections typically include immunity from civil liability for making the report, provided that the report was made without malice and with a reasonable belief that fraud had occurred. The Maryland Insurance Administration actively investigates reports of insurance fraud and works with law enforcement to prosecute offenders. Maryland Annotated Code, Insurance Article, Title 27, Subtitle 8 addresses insurance fraud prevention and detection.