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H.B. 425 2007 Vetoed Bills and Messages
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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 Reauthorization 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.
(c) (1) On finding a violation of this subtitle, the Commissioner may
require an insurer or nonprofit health service plan to make restitution to each
claimant who has suffered actual economic damage because of the violation.
(2) [Restitution] SUBJECT TO PARAGRAPH (3) OF THIS
SUBSECTION, RESTITUTION may not exceed the amount of actual economic damage
sustained, subject to the limits of any applicable policy.
(3) FOR A VIOLATION OF § 27-303(9) OF THIS SUBTITLE, THE
COMMISSIONER MAY REQUIRE RESTITUTION TO AN INSURED FOR THE
FOLLOWING:
(I) ACTUAL DAMAGES. WHICH ACTUAL DAMAGES MAY NOT
EXCEED THE LIMITS OF ANY APPLICABLE POLICY;
(II) EXPENSES AND LITIGATION COSTS INCURRED BY THE
INSURED IN PURSUING AN ADMINISTRATIVE COMPLAINT UNDER § 27-303(9) OF
THIS SUBTITLE. INCLUDING REASONABLE ATTORNEY'S FEES; AND
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- 4688 -
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