ROBERT L. EHRLICH, JR., Governor                             Ch. 275

"ANY PERSON WHO KNOWINGLY PRESENTS FALSE INFORMATION IN AN
APPLICATION FOR INSURANCE OR AN APPLICATION FOR A VIATICAL SETTLEMENT
CONTRACT HAS COMMITTED A FRAUDULENT VIATICAL SETTLEMENT ACT AND ON
CONVICTION IS SUBJECT TO FINES, IMPRISONMENT, OR BOTH, UNDER § 27-408 OF
THE INSURANCE ARTICLE OF THE ANNOTATED CODE OF MARYLAND."

(B) THE ABSENCE OF A STATEMENT AS REQUIRED IN SUBSECTION (A) OF
THIS SECTION DOES NOT CONSTITUTE A DEFENSE IN ANY PROSECUTION FOR A
FRAUDULENT VIATICAL SETTLEMENT ACT.

27-403.

It is a fraudulent insurance act for a person:

(1)     knowingly to fail to return any moneys or premiums paid for a policy
to an insured, designee of the insured, or another person entitled to the moneys or
premiums if the insurance contracted for is not ultimately provided;

(2)     to present or cause to be presented to an insurer documentation or an
oral or written statement made in support of a claim, including a claim that alleges
the theft of a motor vehicle, with knowledge that the documentation or statement
contains false or misleading information about a matter material to the claim;

(3)     except for the prepayment of periodic payments or excess contributions
allowed under the terms of the policy, willfully to collect as a premium a sum in excess
of the premium applicable to the insurance under approved classifications and rates
or, for cases in which classifications and rates are not subject to approval, the
premiums and charges applicable to the insurance as specified in the policy and set by
the insurer;

(4)     to misappropriate or withhold unreasonably funds received or held if
the funds represent premiums or return premiums; [and]

(5)     to misappropriate benefits under a policy; AND

(6) KNOWINGLY OR WILLFULLY TO PRESENT, OR CAUSE TO BE
PRESENTED, DOCUMENTATION OR AN ORAL OR WRITTEN STATEMENT MADE IN,
WITH REFERENCE TO, OR IN SUPPORT OF AN APPLICATION FOR A VIATICAL
SETTLEMENT CONTRACT, THE FINANCING OF A VIATICAL SETTLEMENT CONTRACT,
THE TRANSFER OF A VIATICAL SETTLEMENT CONTRACT, OR THE SETTLEMENT IN
SUPPORT OF A CLAIM MADE UNDER A VIATICAL SETTLEMENT CONTRACT WITH
KNOWLEDGE THAT THE DOCUMENTATION OR STATEMENT CONTAINS FALSE OR
MISLEADING INFORMATION ABOUT MATTERS MATERIAL TO THE APPLICATION,
FINANCING, TRANSFER SETTLEMENT, OR CLAIM.

27-802.

(a) (1) An authorized insurer, its employees, fund producers, or insurance
producers, A VIATICAL SETTLEMENT PROVIDER OR A VIATICAL SETTLEMENT
BROKER who in good faith [have] HAS cause to believe that insurance fraud has been

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