Section 27-303 - Unfair claim settlement practices - In generalIt is an unfair claim settlement practice and a violation of this subtitle for an insurer, nonprofit health service plan, or health maintenance organization to:
(1) misrepresent pertinent facts or policy provisions that relate to the claim or coverage at issue;(2) refuse to pay a claim for an arbitrary or capricious reason based on all available information;(3) attempt to settle a claim based on an application that is altered without notice to, or the knowledge or consent of, the insured;(4) fail to include with each claim paid to an insured or beneficiary a statement of the coverage under which payment is being made;(5) fail to settle a claim promptly whenever liability is reasonably clear under one part of a policy, in order to influence settlements under other parts of the policy;(6) fail to provide promptly on request a reasonable explanation of the basis for a denial of a claim;(7) fail to meet the requirements of Title 15, Subtitle 10B of this article for preauthorization for a health care service;(8) fail to comply with the provisions of Title 15, Subtitle 10A of this article;(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; or(10) fail to comply with the provisions of § 16-118 of this article.Amended by 2014 Md. Laws, Ch. 355,Sec. 2, eff. 6/1/2014.