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Martin O'Malley, Governor
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H.B. 425
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2. THE AMOUNT THE INSURED WAS ENTITLED TO
RECEIVE FROM THE INSURER UNDER THE APPLICABLE POLICY ON THE
UNDERLYING COVERED FIRST-PARTY CLAIM;
3. WHETHER THE INSURER BREACHED ITS
OBLIGATION UNDER THE APPLICABLE POLICY TO COVER AND PAY THE
UNDERLYING COVERED FIRST-PARTY CLAIM, AS DETERMINED BY THE
ADMINISTRATION;
4. WHETHER AN INSURER THAT BREACHED ITS
OBLIGATION FAILED TO ACT IN GOOD FAITH; AND
5. THE AMOUNT OF DAMAGES, EXPENSES,
LITIGATION COSTS, AND INTEREST, AS APPLICABLE AND AS AUTHORIZED
UNDER PARAGRAPH (2) OF THIS SUBSECTION.
(II) THE FAILURE OF THE ADMINISTRATION TO ISSUE A
DECISION WITHIN THE TIME SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION
ITEM SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE CONSIDERED A
DETERMINATION THAT THE INSURER DID NOT BREACH ANY OBLIGATION TO
THE INSURED.
(2) WITH RESPECT TO THE DETERMINATION OF DAMAGES UNDER
ITEM PARAGRAPH (1)(I)5 OF THIS SUBSECTION:
(I) IF THE ADMINISTRATION FINDS THAT THE INSURER
BREACHED AN OBLIGATION TO THE INSURED, THE ADMINISTRATION SHALL
DETERMINE THE OBLIGATION OF THE INSURER TO PAY:
1. ACTUAL DAMAGES, WHICH ACTUAL DAMAGES MAY
NOT EXCEED THE LIMITS OF ANY APPLICABLE POLICY; AND
2. INTEREST ON ALL ACTUAL DAMAGES INCURRED
BY THE INSURED COMPUTED:
A. AT THE RATE ALLOWED UNDER § 11-107(A) OF
THE COURTS ARTICLE; AND
B. FORM THE DATE ON WHICH THE INSURED'S CLAIM
SHOULD HAVE BEEN PAID; AND
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- 4691 -
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