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2007 Vetoed Bills and Messages
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H.B. 425
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(II) IF THE ADMINISTRATION ALSO FINDS THAT THE
INSURER FAILED TO ACT IN GOOD FAITH, THE ADMINISTRATION SHALL ALSO
DETERMINE THE OBLIGATION OF THE INSURER TO PAY:
1. EXPENSES AND LITIGATION COSTS INCURRED BY
THE INSURED, INCLUDING REASONABLE ATTORNEY'S FEES, IN PURSUING
RECOVERY UNDER THIS SUBTITLE; AND
2. INTEREST ON ALL EXPENSES AND LITIGATION
COSTS INCURRED BY THE INSURED COMPUTED:
A. AT THE RATE ALLOWED UNDER § 11-107(A) OF
THE COURTS ARTICLE; AND
B. FROM THE APPLICABLE DATE OR DATES ON
WHICH THE INSURED'S EXPENSES AND COSTS WERE INCURRED.
(3) AN INSURER MAY NOT BE FOUND TO HAVE FAILED TO ACT IN
GOOD FAITH UNDER THIS SECTION SOLELY ON THE BASIS OF DELAY IN
DETERMINING COVERAGE OR THE EXTENT OF PAYMENT TO WHICH THE
INSURED IS ENTITLED IF THE INSURER ACTED WITHIN THE TIME PERIOD
SPECIFIED BY STATUTE OR REGULATION FOR INVESTIGATION OF A CLAIM BY AN
INSURER.
(4) THE AMOUNT OF THE ATTORNEY'S FEES DETERMINED TO BE
PAYABLE TO AN INSURED UNDER PARAGRAPH (2) OF THIS SUBSECTION MAY
NOT EXCEED ONE-THIRD OF THE ACTUAL DAMAGES PAYABLE TO THE INSURED.
(5) THE ADMINISTRATION SHALL SERVE A COPY OF THE
DECISION ON THE INSURED AND THE INSURER IN ACCORDANCE WITH § 2-204(C)
OF THIS ARTICLE.
(F) (1) A IF A PARTY RECEIVES AN ADVERSE DECISION, THE PARTY
SHALL HAVE 30 DAYS AFTER THE DATE OF SERVICE OF THE ADMINISTRATION'S
DECISION TO REQUEST A HEARING.
(2) ALL HEARINGS REQUESTED UNDER THIS SECTION SHALL:
(I) BE REFERRED BY THE COMMISSIONER TO THE OFFICE
OF ADMINISTRATIVE HEARINGS FOR A FINAL DECISION UNDER TITLE 10,
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE;
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(II) BE HEARD DE NOVO;
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- 4692 -
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