Ch. 71  1999 LAWS OF MARYLAND

right to a hearing and the right to appeal from the action of the Commissioner under
§§ 2-210 through 2-215 of the Insurance Article.

Article - Insurance

4-113.

(d) Instead of or in addition to suspending or revoking a certificate of
authority, the Commissioner may:

(1) impose on the holder a penalty of not less than $100 but not more
than $125,000 for each violation of this article; and

(2) require the holder to make restitution to any person who has suffered
financial injury because of the violation of this article.

27-304.

It is an unfair claim settlement practice and a violation of this subtitle for an
insurer or nonprofit health service plan, when committed with the frequency to
indicate a general business practice, to:

(1) misrepresent pertinent facts or policy provisions that relate to the
claim or coverage at issue;

(2) fail to acknowledge and act with reasonable promptness on
communications about claims that arise under policies;

(3) fail to adopt and implement reasonable standards for the prompt
investigation of claims that arise under policies;

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

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

(6) fail to make a prompt, fair, and equitable good faith attempt, to settle
claims for which liability has become reasonably clear;

(7) compel insureds to institute litigation to recover amounts due under
policies by offering substantially less than the amounts ultimately recovered in
actions brought by the insureds;

(8) attempt 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) attempt to settle a claim based on an application that is altered
without notice to, or the knowledge or consent of, the insured;

(10) fail to include with each claim paid to an insured or beneficiary a
statement of the coverage under which the payment is being made;