# Md. Code, Insurance § 27-303: –303

> Maryland · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-303

## Section

- **Citation:** Md. Code, Insurance § 27-303
- **Heading:** –303
- **Jurisdiction:** Maryland
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MD Code / Article gin / Title 27 / Subtitle 3 / Section 27-303

## Text

It 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.

## Nearby sections

- [Md. Code, Insurance § 27-301 §27–301.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-301.md)
- [Md. Code, Insurance § 27-302 §27–302.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-302.md)
- [Md. Code, Insurance § 27-303 §27–303.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-303.md)
- [Md. Code, Insurance § 27-304 §27–304.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-304.md)
- [Md. Code, Insurance § 27-304.1 §27–304.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-304.1.md)
- [Md. Code, Insurance § 27-305 §27–305.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-305.md)
- [Md. Code, Insurance § 27-306 §27–306.](https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-306.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_Agin_T27_S3_S27-303. Check the current official text before relying on it. Not legal advice.