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Martin O'Malley, Governor
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Ch. 150
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27-303.
It is an unfair claim settlement practice and a violation of this subtitle for an
insurer or nonprofit health service plan to:
(7) fail to meet the requirements of Title 15, Subtitle 10B of this article
for preauthorization for a health care service; [or]
(8) fail to comply with the provisions of Title 15, Subtitle 10A of this
article: OR
(9) FAIL TO ACT IN GOOD FAITH. AS DEFINED UNDER § 27-1001 OF
THIS TITLE. IN SETTLING A FIRST-PARTY CLAIM UNDER A POLICY OF PROPERTY
AND casualty INSURANCE.
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:
(16) fail to meet the requirements of Title 15, Subtitle 10B of this article
for preauthorization for a health care service; [or]
(17) fail to comply with the provisions of Title 15. Subtitle 10A of this
article; OR
(18) FAIL TO ACT IN GOOD FAITH. AS DEFINED UNDER § 27-1001 OF
THIS TITLE. IN SETTLING A FIRST-PARTY CLAIM UNDER A POLICY OF PROPERTY
AND CASUALTY INSURANCE.
27-305.
(a) The Commissioner may impose a penalty:
(1) not exceeding $2,500 for each violation of § 27-303 of this subtitle or
a regulation adopted under § 27-303 of this subtitle: AND
(2) NOT EXCEEDING $125,000 FOR EACH VIOLATION OF §
27-303(9) OF THIS SUBTITLE OR A REGULATION ADOPTED UNDER § 27-303(9)
OF THIS SUBTITLE.
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- 1259 -
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