The Maryland Insurance Administration (“MIA”) has recently released Bulletin 26-22 regarding conflicts of laws and unfair claims settlement practices, applicable to all health insurers, nonprofit health service plans, and health maintenance organizations. The key highlights are as follows:
- A life insurance or health insurance policy or annuity contract may not be delivered or issued for delivery in Maryland if the policy or contract states that it is to be construed or governed according to the laws of another state or country or if it deprives the courts of Maryland of the jurisdiction of any action against the insurer.
- It is an unfair claim settlement practice for an insurer to refuse to pay a claim for an arbitrary or capricious reason based on all available information.
- If an insurer applies the laws of a state other than the intended state of Maryland to a Maryland-sitused life or health insurance policy and refuses to pay a claim based on this application, such actions will be deemed an unfair claim settlement practice based on arbitrary or capricious reasoning.
Please note that this bulletin became effective upon issuance on September 10, 2026.
For any questions related to the above referenced bulletin in Maryland, please contact Westmont Associates!