Maryland P&C Insurance Law & Regulation
The state portion of the Maryland property and casualty exam begins with who regulates insurance in Maryland and the consumer-protection rules that overlay the national coverage forms. This chapter covers the Maryland Insurance Administration and its authority, unfair trade practices, and the cancellation and nonrenewal protections that apply to policies delivered in the state.
The Maryland Insurance Administration
Maryland regulates insurance through the Maryland Insurance Administration (MIA), led by the Insurance Commissioner. The administration issues, denies, suspends, and revokes producer licenses, reviews policy forms and rates, investigates complaints, and enforces the Maryland Insurance Article. A common exam point is that the MIA, not the Motor Vehicle Administration or a labor or comptroller agency, licenses property and casualty producers and regulates insurers doing business in the state.
Unfair Trade Practices and Producer Conduct
Maryland's unfair trade practices law prohibits misrepresenting policy terms, false or misleading advertising, unfair discrimination between similar risks, defamation of an insurer, coercion, and unfair claim settlement practices. Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is prohibited. Premiums a producer collects are held in a fiduciary capacity and must not be commingled or converted. Violations can bring fines and license suspension or revocation by the MIA.
Cancellation and Nonrenewal Protections
Maryland law limits how and when an insurer may cancel or nonrenew personal auto and homeowners policies and requires advance written notice so the insured can find replacement coverage. Once a policy is seasoned beyond its initial underwriting period, cancellation is generally allowed only for specific reasons such as nonpayment of premium, fraud, or a substantial increase in risk. The exact notice periods are set by statute and can change; confirm the current day-counts with the Maryland Insurance Administration before relying on a specific number.