1628

LAWS OF MARYLAND

INADEQUATE ACCOUNT INFORMATION, THE COMMISSIONER MAY EMPLOY
EXPERTS TO REWRITE, POST, OR BALANCE THE ACCOUNTS AT THE EXPENSE
OF THE HEALTH MAINTENANCE ORGANIZATION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

May

CHAPTER 442

(House Bill 325)

AN ACT concerning

FOR

Insurance - Unfair Claim Settlement Practices
the purpose of prohibiting certain claim settlement practices

on certain insurance and nonprofit health service plans;

specifying certain penalties for violations of this Act;
providing for the limitation of certain causes of action;
stating that this Act provides only certain administrative
remedies; providing that the Commissioner may find certain
actions to violate this Act under certain circumstances; and

to unfair insurance claim settlement

generally
practices.

BY adding to

relating

Article 48A - Insurance Code
Section 230A

Annotated Code of Maryland
(1979 Replacement Volume and

1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

230A.

(A) IN THIS SECTION "POLICY" MEANS AN INDIVIDUAL OR GROUP
POLICY, CONTRACT, OR CERTIFICATE ISSUED BY AN INSURER, INCLUDING
A NONPROFIT HEALTH SERVICE PLAN.

(B) (1) THIS SECTION APPLIES TO ANY INDIVIDUAL OR GROUP
POLICY DELIVERED OR ISSUED BY ANY INSURER, INCLUDING ANY
NONPROFIT HEALTH SERVICE PLAN AUTHORIZED UNDER THE PROVISIONS OF
SUBTITLE 20 OF THIS ARTICLE, IN THIS STATE OR ISSUED TO A GROUP

Ch. 442