Ch. 35

1997 LAWS OF MARYLAND

15-214. TIME OF PAYMENT OF CLAIMS.

(A) IN GENERAL.

EACH POLICY OF HEALTH INSURANCE SHALL CONTAIN THE FOLLOWING
PROVISION:

"TIME OF PAYMENT OF CLAIMS: INDEMNITIES PAYABLE UNDER THIS POLICY
FOR ANY LOSS OTHER THAN LOSS FOR WHICH THIS POLICY PROVIDES ANY
PERIODIC PAYMENT, WILL BE PAID IMMEDIATELY UPON RECEIPT OF DUE WRITTEN
PROOF OF SUCH LOSS. SUBJECT TO DUE WRITTEN PROOF OF LOSS, ALL ACCRUED
INDEMNITIES FOR LOSS FOR WHICH THIS POLICY PROVIDES PERIODIC PAYMENT

WILL BE PAID ........ (INSERT PERIOD FOR PAYMENT WHICH MUST NOT BE LESS

FREQUENTLY THAN MONTHLY) AND ANY BALANCE REMAINING UNPAID UPON THE
TERMINATION OF LIABILITY WILL BE PAID IMMEDIATELY UPON RECEIPT OF DUE
WRITTEN PROOF."

(B) PERIODIC PAYMENT.

A POLICY IS CONSIDERED TO PROVIDE FOR PERIODIC PAYMENT FOR LOSS
ONLY IF THE POLICY CONTAINS A SPECIFIC STATEMENT TO THAT EFFECT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 447.

The quoted language of subsection (a) of this section is the same as the
quoted language of former Art. 48A, § 447.

Defined terms: "Health insurance" § 1-101
"Policy" § 1-101

15-215. PAYMENT OF CLAIMS.

(A) IN GENERAL.

EACH POLICY OF HEALTH INSURANCE SHALL CONTAIN THE FOLLOWING
PROVISION:

"PAYMENT OF CLAIMS: INDEMNITY FOR LOSS OF LIFE WILL BE PAYABLE IN
ACCORDANCE WITH THE BENEFICIARY DESIGNATION AND THE PROVISIONS
RESPECTING SUCH PAYMENT WHICH MAY BE PRESCRIBED HEREIN AND EFFECTIVE
AT THE TIME OF PAYMENT. IF NO SUCH DESIGNATION OR PROVISION IS THEN
EFFECTIVE, SUCH INDEMNITY SHALL BE PAYABLE TO THE ESTATE OF THE INSURED.
ANY OTHER ACCRUED INDEMNITIES UNPAID AT THE INSURED'S DEATH MAY, AT
THE OPTION OF THE INSURER, BE PAID EITHER TO SUCH BENEFICIARY OR TO SUCH
ESTATE. ALL OTHER INDEMNITIES WILL BE PAYABLE TO THE INSURED."

(B) OPTIONAL PROVISIONS.

(1) AT THE OPTION OF THE INSURER, A POLICY MAY INCLUDE EITHER
OR BOTH OF THE PROVISIONS SET FORTH IN PARAGRAPHS (2) AND (3) OF THIS
SUBSECTION WITH THE PROVISION SET FORTH IN SUBSECTION (A) OF THIS SECTION.

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