1630                                              LAWS OF MARYLAND                                         Ch. 442

(6)   FAILING TO MAKE A GOOD FAITH ATTEMPT PROMPTLY,
FAIRLY, OR EQUITABLY TO SETTLE CLAIMS FOR WHICH LIABILITY HAS
BECOME REASONABLY CLEAR;

(7)   COMPELLING INSUREDS TO INSTITUTE LITIGATION TO
RECOVER AMOUNTS DUE UNDER AN INSURANCE POLICY BY OFFERING
SUBSTANTIALLY LESS THAN THE AMOUNTS ULTIMATELY RECOVERED IN
ACTIONS BROUGHT BY SUCH INSUREDS;

(8)  ATTEMPTING TO SETTLE A CLAIM FOR LESS THAN THE
AMOUNT TO WHICH A REASONABLE PERSON WOULD EXPECT TO BE ENTITLED
AFTER STUDYING WRITTEN OR PRINTED ADVERTISING MATERIAL
ACCOMPANYING, OR MADE PART OF, AN APPLICATION;

(9)  ATTEMPTING TO SETTLE A CLAIM ON THE BASIS OF AN
APPLICATION WHICH IS ALTERED WITHOUT NOTICE TO, OR THE KNOWLEDGE
OR CONSENT OF, THE INSURED;

(10)   FAILING TO INCLUDE WITH CLAIMS PAID TO INSUREDS
OR BENEFICIARIES STATEMENTS SETTING FORTH THE COVERAGE UNDER
WHICH PAYMENTS ARE BEING MADE;

(11)  MAKING KNOWN TO INSUREDS OR CLAIMANTS A POLICY
OF APPEALING FROM ARBITRATION AWARDS IN ORDER TO COMPEL INSUREDS
OR CLAIMANTS TO ACCEPT A SETTLEMENT OR COMPROMISE LESS THAN THE
AMOUNT AWARDED IN ARBITRATION;

(12)   DELAYING AN INVESTIGATION OR PAYMENT OF A CLAIM

BY REQUIRING A CLAIMANT OR A CLAIMANTS LICENSED PHYSICIAN HEALTH
CARE PROVIDER TO SUBMIT A PRELIMINARY CLAIM REPORT IN ADDITION TO

SUBSEQUENT SUBMISSION OF FORMAL PROOF OF LOSS FORMS, CONTAINING

SUBSTANTIALLY THE SAME INFORMATION;

m

(13)   FAILING TO SETTLE CLAIMS PROMPTLY WHENEVER
LIABILITY IS REASONABLY CLEAR UNDER ONE PORTION OF A POLICY, IN
ORDER TO INFLUENCE SETTLEMENTS UNDER OTHER PORTIONS OF THE
POLICY; OR

(14)   FAILING PROMPTLY TO PROVIDE A REASONABLE
EXPLANATION FOR THE BASIS FOR DENIAL OF A CLAIM OR THE OFFER OF A
COMPROMISE SETTLEMENT.

(E) (1) THE COMMISSIONER MAY IMPOSE A PENALTY OF UP TO $500
FOP. EACH VIOLATION OF SUBSECTION (C) OF THIS SECTION, OR OF ANY
REGULATION PROMULGATED UNDER SUBSECTION (C) OF THIS SECTION.

(2)  THE PENALTY FOR A VIOLATION OF SUBSECTION (D) OF
THIS SECTION SHALL BE AS PROVIDED IN §§ 12, 55, 55A, AND 215 OF
THIS ARTICLE.

(3)  (I) UPON FINDING OF A VIOLATION OF THIS SECTION
THE COMMISSIONER MAY REQUIRE THAT RESTITUTION BE MADE BY AN
INSURER OR NONPROFIT HEALTH SERVICE PLAN TO ANY CLAIMANT WHO HAS
SUFFERED ACTUAL ECONOMIC DAMAGE AS A RESULT OF A VIOLATION OF
THIS SECTION.