Bill > HB277

This bill expands the grounds on which the Maryland Insurance Commissioner can take action against a third-party administrator, which is a company that handles administrative tasks for insurance plans, such as processing claims or managing enrollment. Specifically, the Commissioner can now deny an applicant's registration, refuse to renew a registration, suspend it, or revoke it if the administrator violates any part of the insurance article or another state law related to insurance, or if they knowingly fail to follow a regulation or order from the Commissioner. Additionally, the bill increases the maximum civil penalty the Commissioner can impose for each violation by an administrator from $10,000 to $10,000 per violation of the entire insurance article, and it also allows the Commissioner to consider a broader range of factors when determining the amount of a civil penalty, including the seriousness of the violation, the administrator's history, and the impact on the insurance plan and its participants.