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Bill > HB1069
MD HB1069
MD HB1069Life and Health Insurance Policies and Annuity and Health Maintenance Organization Contracts - Discretionary Clauses - Prohibition
summary
Introduced
02/05/2025
02/05/2025
In Committee
04/04/2025
04/04/2025
Crossed Over
03/12/2025
03/12/2025
Passed
04/07/2025
04/07/2025
Dead
Signed/Enacted/Adopted
05/06/2025
05/06/2025
Introduced Session
2025 Regular Session
Bill Summary
Prohibiting the use of discretionary clauses in life insurance policies, health insurance policies, annuity contracts, and health maintenance organization contracts.
AI Summary
This bill prohibits insurance carriers, including insurers, nonprofit health service plans, and health maintenance organizations (HMOs), from selling, delivering, or issuing insurance policies in Maryland that contain discretionary clauses. A discretionary clause is a provision that allows the carrier to have sole discretion in interpreting the terms of the policy or establishing review standards that conflict with state laws. The bill specifically covers health insurance policies, life insurance policies, annuity contracts, health maintenance organization contracts, and disability insurance policies. The new law will apply to all policies, contracts, and health benefit plans issued, delivered, or renewed in the state on or after January 1, 2026, and the bill itself will take effect on October 1, 2025. By eliminating discretionary clauses, the bill aims to protect consumers by ensuring that insurance carriers cannot unilaterally interpret policy terms in a way that might unfairly disadvantage policyholders.
Committee Categories
Budget and Finance, Health and Social Services
Sponsors (25)
Teresa Woorman (D)*,
Tiffany Alston (D),
Heather Bagnall (D),
Harry Bhandari (D),
Brian Chisholm (R),
Bonnie Cullison (D),
Pam Guzzone (D),
Terri Hill (D),
Tom Hutchinson (R),
Steve Johnson (D),
Anne Kaiser (D),
Aaron Kaufman (D),
Ken Kerr (D),
Nic Kipke (R),
Lesley Lopez (D),
Ashanti Martínez (D),
Matt Morgan (R),
Joseline Peña-Melnyk (D),
Teresa Reilly (R),
Sandy Rosenberg (D),
Kim Ross (D),
Kathy Szeliga (R),
Deni Taveras (D),
Jennifer White Holland (D),
Jamila Woods (D),
Last Action
Approved by the Governor - Chapter 396 (on 05/06/2025)
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bill summary
Document Type | Source Location |
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State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1069?ys=2025RS |
BillText | https://mgaleg.maryland.gov/2025RS/Chapters_noln/CH_396_hb1069t.pdf |
Vote Image | https://mgaleg.maryland.gov/2025RS/votes_comm/hb1069_fin.pdf |
BillText | https://mgaleg.maryland.gov/2025RS/bills/hb/hb1069t.pdf |
Favorable with Amendments 583226/1 Adopted | https://mgaleg.maryland.gov/2025RS/amds/bil_0009/hb1069_58322601.pdf |
Vote Image | https://mgaleg.maryland.gov/2025RS/votes_comm/hb1069_hgo.pdf |
BillText | https://mgaleg.maryland.gov/2025RS/bills/hb/hb1069f.pdf |
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