PARRIS N. GLENDENING, Governor                             Ch. 348

(5) Failing to settle a claim promptly whenever liability is reasonably clear,
under one portion of a policy in order to influence settlements under other portions of
the policy;

(6) Failing promptly upon request to provide a reasonable explanation of
the basis for a denial of a claim; or

(7) Failing to meet the requirements of Title 19, Subtitle 13 of the Health -
General Article for preauthorization for a health care service.

(d) The following actions by an insurer or nonprofit health service plan, if
committed with such frequency as to indicate a general business practice, arc unfair claim
settlement practices and are violations of this section:

(1) Misrepresenting pertinent facts or insurance policy provisions relating to
the coverages at issue;

(2)     Failing to acknowledge and act with reasonable promptness on
communications regarding claims arising under insurance policies;

(3) Failing to adopt and implement reasonable standards for the prompt
investigation of claims arising under insurance policies;

(4)     Refusing to pay claims without conducting a reasonable investigation
based on all available information;

(5)     Failing to affirm or deny coverage of claims within a reasonable time
after proof of loss statements have been completed;

(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;

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