Maryland Insurance Law
The regulatory framework
The Maryland Insurance Administration, led by the Insurance Commissioner, regulates insurers, producers, public adjusters, and claim practices under the Insurance Article and COMAR. The Commissioner licenses and disciplines, examines insurers, reviews rates and forms, and acts on consumer complaints. Title 27 prohibits unfair trade practices, including misrepresentation, false advertising, and unfair claim settlement practices.
Safety nets and institutions
- The Maryland Property and Casualty Insurance Guaranty Corporation pays covered claims of insolvent property and casualty insurers, subject to statutory limits.
- The Maryland Joint Insurance Association provides property coverage for risks the voluntary market rejects.
- The Maryland Automobile Insurance Fund serves drivers who cannot obtain auto coverage in the voluntary market.
- The Insurance Fraud Division within the MIA investigates fraudulent claims and applications.
Worked example
An insurer denies a water claim citing an exclusion but never sends a written explanation and ignores two requests for the policy. The adjuster documents the dates, sends a written demand citing the policy language, and files a complaint with the MIA. The MIA can investigate the handling and impose administrative penalties, but it does not automatically award the claim amount; the adjuster still needs a coverage argument and damages proof.
Traps that cost marks
- Assuming the MIA is a court that awards damages.
- Confusing the guaranty corporation with a state-run insurer.
- Thinking a producer license covers public adjusting.
- Missing that rate and form filing rules differ by line of business.