Maryland State Laws on Life and Health Insurance

These flashcards cover key terminology and definitions related to Maryland state life and health insurance laws.

Commissioner

The head of the Maryland Insurance Administration, appointed by the governor to oversee insurance regulation.

Certificate of Authority

A legal document required for an insurer to engage in the insurance business in Maryland.

Grace Period

A 31-day timeframe during which an insured can make payments without loss of coverage.

Incontestability Clause

A provision stating that a policy is incontestable after two years, except for nonpayment of premiums.

Fiduciary Duty

The obligation of an insurance producer to act in the best interests of the clients regarding premiums and policy management.

Unfair Claims Settlement Practices

Practices deemed improper when handling insurance claims, such as misrepresentation or delay in processing claims.

Long-Term Care Insurance

Insurance designed to cover long-term services and supports, including personal and custodial care.

Health Maintenance Organization (HMO)

A type of health insurance plan that provides services for a fixed periodic fee.

Medicare Supplement Insurance

Policies that help cover costs not paid by Medicare, like copayments, coinsurance, and deductibles.

Consumer Privacy Regulation

Laws aimed at protecting the personal financial information of consumers in the insurance industry.

Nominee for Nonresident License

An individual must be a licensed, good standing resident producer in their home state to obtain a nonresident producer license.

Reinstatement of License

The process to restore an expired insurance producer license within 1 year of its expiration.

Temporary License

A short-term license issued for a specific situation, valid for 15 months, without regard to typical educational or examination requirements.

Twisting

The practice of misleading an applicant or policyholder to lapse or forfeit an existing policy for a new one.

Summary of Benefits

A document that summarizes the coverage details of an insurance policy and any limitations or exclusions.

Claims Denial

The refusal by an insurer to pay a claim based on grounds specified in the policy.