Best Insurance Lawyers in Maryland

About Insurance Law in Maryland, United States

Insurance law in Maryland governs the regulation, sale, and management of insurance policies meant to protect individuals, families, and businesses from financial losses. This includes everything from auto and homeowners insurance to health, life, disability, and commercial insurance. The Maryland Insurance Administration (MIA) is the primary state agency overseeing insurance companies and agents operating in Maryland, ensuring consumers are treated fairly and that insurance providers comply with state regulations.

Insurance law covers many facets such as policy terms, claim denials, premium disputes, bad faith practices, and regulatory requirements. Maryland insurance law aims to protect consumers by setting minimum coverage standards, requiring prompt payment of claims, preventing discriminatory practices, and providing avenues for dispute resolution.

Why You May Need a Lawyer

While many insurance-related matters are handled without legal intervention, there are situations where having a knowledgeable attorney can make a significant difference. Common scenarios include:

• Denied or delayed insurance claims without valid justification
• Disputes over the interpretation of policy language or exclusions
• Bad faith insurance practices, such as unreasonable refusal to pay claims
• Underpayment of claims that do not cover actual losses
• Issues with insurance agents or brokers, including misrepresentation or negligence
• Disputes involving uninsured or underinsured motorists
• Complex business insurance claims, including those after property damage or business interruption
• Appealing a health insurance decision or denial
• Litigation with an insurance provider
• Guidance regarding compliance with Maryland’s insurance requirements

Legal professionals help interpret policy documents, advocate for your interests, negotiate with insurance companies, and represent you in administrative and court proceedings when necessary.

Local Laws Overview

Maryland has some important laws unique to its insurance landscape. The Maryland Insurance Code outlines requirements for all insurance transactions and is enforced by the Maryland Insurance Administration. Some key aspects to be aware of include:

• Mandatory Coverage: Maryland requires drivers to carry minimum amounts of auto insurance, including uninsured and underinsured motorist coverage, bodily injury liability, property damage liability, and personal injury protection unless the coverage is waived as allowed by law.
• Time Limits on Claims: Insurance policies will specify notice requirements, but Maryland also has statutes of limitations for filing lawsuits related to insurance claims - for example, most breach of contract claims must be filed within three years.
• Bad Faith Protections: Maryland law prohibits insurance companies from acting in bad faith, such as unfairly denying valid claims. Policyholders can file a complaint with the MIA or, in certain situations, pursue legal action for damages.
• Regulation of Premiums and Underwriting: The MIA reviews insurance rates and policy forms to ensure they comply with state standards and are not discriminatory or unfairly priced.
• Consumer Protections: Maryland has specific protections for consumers, including a process for contesting cancellations or nonrenewals of certain insurance policies and procedures for resolving disputes with insurance companies.

Frequently Asked Questions

What is the minimum auto insurance coverage required in Maryland?

All Maryland drivers must have liability coverage of at least 30,000 dollars per person for bodily injury, 60,000 dollars per accident for bodily injury, and 15,000 dollars for property damage, plus uninsured motorist coverage and personal injury protection, unless PIP is waived.

How do I file a complaint against an insurance company in Maryland?

You can file a complaint with the Maryland Insurance Administration by mail, phone, or their online portal. The MIA will investigate your issue and may help resolve disputes between you and the insurance company.

What should I do if my insurance claim is denied?

First, request a written explanation for the denial. Review your policy to understand the reason. If you believe the denial was wrongful or in bad faith, consider contacting a lawyer or filing a complaint with the MIA.

Are there laws that protect me from unfair claim practices?

Yes. Maryland law prohibits insurance companies from engaging in unfair claim settlement practices, such as failing to investigate claims promptly or denying valid claims without a reasonable basis.

Can my insurance company cancel my policy without notice?

Insurers must provide advance written notice if they intend to cancel or non-renew your policy, except in certain cases involving fraud or nonpayment. The required notice period depends on the policy type and reason for cancellation.

How long do I have to file a lawsuit against an insurance company in Maryland?

In most cases, you have three years from the date of the alleged breach of contract or denial to file a lawsuit. However, consult your policy and an attorney for guidance, as time limits can vary based on the circumstances.

Does Maryland have special rules for health insurance denials?

Maryland law gives you the right to appeal health insurance denials through an internal review and, in many cases, an external review process. For urgent situations, expedited procedures may apply.

Is flood insurance required for homeowners in Maryland?

Flood insurance is not required by Maryland law, but mortgage lenders may require it if your property is in a designated flood zone. Standard homeowners policies do not cover flood damage, so separate flood insurance may be necessary.

What does "bad faith" mean in insurance law?

Bad faith refers to dishonest or unfair practices by an insurance company, such as intentionally denying, delaying, or underpaying a valid claim without reasonable grounds. Maryland law allows policyholders to pursue remedies when insurers act in bad faith.

How can I find out if an insurance agent or company is licensed in Maryland?

The Maryland Insurance Administration's website offers a searchable database where you can verify the license status of agents, brokers, and insurance companies doing business in Maryland.

Additional Resources

Several organizations and agencies can help you understand your rights or assist with insurance issues in Maryland:

• Maryland Insurance Administration (MIA): The state agency overseeing insurance regulation and consumer protection.
• Maryland Attorney General's Consumer Protection Division: Offers general consumer protection resources and may assist with broader insurance-related problems.
• Maryland Legal Aid: Provides free or low-cost legal services for those who qualify and can help with insurance disputes.
• Maryland Health Connection: The state's health insurance marketplace, which offers assistance with health plan selection and enrollment issues.
• National Association of Insurance Commissioners (NAIC): Offers consumer information, guides, and complaint tools relevant to Maryland residents.

Next Steps

If you have an insurance concern in Maryland, start by reviewing your policy documents and reaching out to your insurance company to seek clarification or resolve the issue. Carefully document all communications and responses.

If you are unable to resolve your issue, file a complaint with the Maryland Insurance Administration. For complex disputes or when your rights are at risk, consult an attorney who is experienced in Maryland insurance law. A local lawyer can assess your case, negotiate with insurance companies on your behalf, and represent you in legal proceedings if necessary.

Act promptly, as waiting too long might affect your legal rights and options. Remember to gather all relevant documents such as correspondence, policy materials, and claim records before meeting with a legal professional.

By taking these steps, you will be well equipped to address your insurance questions and protect your interests under Maryland law.