Unfair Trade Practices and Other Prohibited Practices

What this document is

Maryland Insurance Article Title 27 - Unfair Trade Practices and Other Prohibited Practices (90 sections) is a state statute published by Maryland General Assembly, Department of Legislative Services (mgaleg.maryland.gov). It is one of the Maryland documents that insurance license exam questions are written from, including maryland life & health, maryland property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Md. Code Ann., Ins. Title 27 § 27-301 (Intent and Limits of the Unfair Claim Settlement Practices Subtitle)

  “(a) The intent of this subtitle is to provide an additional administrative remedy to a claimant for a violation of this subtitle or a regulation that relates to this subtitle. (b) (1) This subtitle provides administrative remedies only. (2) This subtitle does not provide or prohibit a private right...”

• Md. Code Ann., Ins. Title 27 § 27-208(a)(2)(i) (Unfair Discrimination in Life and Annuity Contracts)

  “Notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for contracts of life insurance or annuity contracts for a reason based on the blindness or other physical handicap or disability of an applicant or policyholder.”

• Md. Code Ann., Ins. Title 27 § 27-103(e) (Order Does Not Relieve Other Liability)

  “A cease and desist order issued under this section or an order of court that enforces it does not relieve any person affected by the order from any other liability, penalty, or forfeiture under law.”

• Md. Code Ann., Ins. Title 27 § 27-302 (Scope of the Unfair Claim Settlement Practices Subtitle)

  “(a) This subtitle applies to each individual or group policy, contract, or certificate of an insurer, nonprofit health service plan, or health maintenance organization that: (1) is delivered or issued in the State; (2) is issued to a group that has a main office in the State; or (3) covers...”

• Md. Code Ann., Ins. Title 27 § 27-203 (False Advertising)

  “A person may not make, publish, disseminate, circulate, place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter, or...”

• Md. Code Ann., Ins. Title 27 § 27-304 (Unfair Claim Settlement Practices Committed as a General Business Practice)

  “It is an unfair claim settlement practice and a violation of this subtitle for an insurer, nonprofit health service plan, or health maintenance organization, when committed with the frequency to indicate a general business practice, to: (1) misrepresent pertinent facts or policy provisions that...”

• Md. Code Ann., Ins. Title 27 § 27-102 (General Prohibition on Unfair Trade Practices)

  “A person may not engage in the State in a trade practice that is defined in this title as, or determined under this title to be, an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.”

• Md. Code Ann., Ins. Title 27 § 27-210(d) (Practices That Are Not Rebates)

  “It is not discrimination or a rebate to readjust the rate of premium for a group policy based on the loss or expense experience under the policy, at the end of any policy year, retroactive only for that policy year.”

• Md. Code Ann., Ins. Title 27 § 27-103(a)(2) (Hearing Before Cease and Desist Order)

  “§ 27-103. (a) (1) If the Commissioner finds that a person in the State has engaged or is engaging in an act or practice that is defined in or prohibited under this title, the Commissioner shall order the person to cease and desist from the act or practice. (2) The Commissioner shall hold a hearing...”

• Md. Code Ann., Ins. Title 27 § 27-204 (Defamation of Insurer)

  “A person may not make, publish, disseminate, or circulate, directly or indirectly, or aid, abet, or encourage the making, publishing, disseminating, or circulating of an oral or written statement or a pamphlet, circular, article, or literature that: (1) is false or maliciously critical of or...”

• Md. Code Ann., Ins. Title 27 § 27-103(c) (Court Order on Appeal)

  “If an appeal is taken, the court shall issue its own order that requires compliance with the terms of the cease and desist order to the extent that the cease and desist order is affirmed.”

• Md. Code Ann., Ins. Title 27 § 27-210(f) (Practices Not Discrimination or Rebates)

  “It is not discrimination or a rebate to issue policies of life insurance or health insurance or annuity contracts on a salary savings or payroll deduction plan or other distribution plan at a reduced rate reasonably commensurate with the savings made by use of the plan.”

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Questions about this source

More Maryland sources

• Md. Code, Insurance s. 10-104 - License required; insurance producerState statute
• Md. Code, Insurance s. 10-126 - Grounds for denial, suspension, or revocation of licenseState statute
• Md. Code, Insurance s. 27-208 - Unfair discrimination between individuals of the same class in life rates, dividends and benefitsState statute
• Md. Code, Insurance s. 27-209 - Prohibited inducements and rebates not specified in the contractState statute
• Md. Code, Insurance s. 27-216 - Rebating and inducements; willful collection of excess premiumState statute
• Md. Code, Insurance s. 27-405 - Fraudulent insurance act: acting without a licence or certificationState statute
• Maryland Insurance Article Title 10 - Insurance Producers and Other Insurance Professionals (103 sections)State statute
• Maryland Insurance Article Title 15 - Health Insurance, first half (Secs. 15-101 through 15-815)State statute