Ch. 305

2003 LAWS OF MARYLAND

CHAPTER 305
(House Bill 499)

AN ACT concerning

Maryland Insurance Administration - Disability Benefits - Adoption of

Regulations

FOR the purpose of requiring the Maryland Insurance Commissioner to adopt
certain regulations establishing a process to be used by certain insurers for
handling disability benefit claims under certain circumstances; requiring
certain insurers under certain circumstances to provide an insured with a
process to dispute an insurer's disability benefit decision; providing that certain
regulations establishing a process to be used by insurers offering individual
disability benefit policies may not take effect until a certain date; and generally
relating to claims procedures for disability benefits.

BY adding to

Article - Insurance

Section 15-1010

Annotated Code of Maryland

(2002 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

15-1010.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) (I) "DISABILITY BENEFIT" MEANS A BENEFIT THAT IS PAYABLE
BASED ON THE DISABILITY OF A COVERED INDIVIDUAL.

(II) "DISABILITY BENEFIT" DOES NOT INCLUDE:

1.       LONG-TERM CARE INSURANCE;

2.       A BENEFIT THAT IS PAYABLE BASED SOLELY ON A
DISMEMBERMENT OF A COVERED INDIVIDUAL;

3.       BENEFITS IN A LIFE INSURANCE POLICY THAT OPERATE
TO SAFEGUARD THE CONTRACT FROM LAPSE OR TO PROVIDE A SPECIAL SURRENDER
VALUE, SPECIAL BENEFIT, OR ANNUITY IN THE EVENT OF TOTAL AND PERMANENT
DISABILITY; OR

4.       BENEFITS IN A HEALTH INSURANCE POLICY THAT
OPERATE TO SAFEGUARD THE CONTRACT FROM LAPSE DUE TO DISABILITY.

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