Maryland taking a harsher stance against insurance professionals violating regulations
Maryland taking a harsher stance against insurance professionals violating regulations | Insurance Business America
Insurance News
Maryland taking a harsher stance against insurance professionals violating regulations
Insurers, adjusters, and more to face stiffer fines if caught
Insurance News
By
Kenneth Araullo
Unauthorized insurers, insurance producers, and public adjusters in Maryland may face higher fines starting Oct. 1 due to legislative changes that increased the maximum allowable penalties, according to a bulletin from the Maryland Insurance Administration.
Entities operating as unauthorized insurers will see civil penalties increase to $125,000, up from $50,000, as stated by the Maryland Insurance Administration. Additionally, it remains illegal to act as a producer for an unauthorized insurer.
According to AM Best, public adjusters found guilty of making material misstatements on license applications, engaging in dishonest practices, or demonstrating incompetency will face increased fines, with maximum civil penalties rising to $5,000 from $500.
Licensed insurance producers will also face a new maximum penalty of $5,000, an increase from the previous cap of $500. These fines can be imposed for infractions such as materially misrepresenting policy provisions, attempting to obtain a license through fraudulent means, and issuing substantial over-insurance on property risks.
The fines are determined by the insurance commissioner, and the updated insurance code stipulates that civil penalties for infractions cannot be less than $100.
Beyond monetary penalties, producers and public adjusters could still face license suspension, revocation, or renewal denials for violations, as outlined in the Maryland insurance code.
Starting Oct. 1, these updated regulations will be enforced by a new commissioner, Marie Grant, who was appointed to the role by Gov. Wes Moore in July.
Elsewhere in the regulatory space, California Insurance Commissioner Ricardo Lara has taken action to expedite the reviews following delays in legislative efforts to address the review process for home insurance rate hikes.
Lara issued a bulletin on Aug. 9, as part of his broader Sustainable Insurance Strategy. It aims to stabilize the home insurance market through a series of reforms. The new measures require the Department of Insurance to review complete rate applications within 60 days.
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