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. Specifically, the Commissioner can now deny an application for registration, refuse to renew a registration, suspend, or revoke a registration if the administrator violates any provision of the Maryland Insurance Article or another state law related to insurance, or if they knowingly fail to comply with 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, and clarifies that this penalty applies to violations of the entire Insurance Article, not just a specific subtitle. The Commissioner will consider several factors when determining the penalty amount, including the seriousness of the violation, the administrator's good faith and history of violations, the impact on the insurance plan and its participants, and the administrator's financial assets.

Budget and Finance, Health and Social Services

Health (House)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0277?ys=2026RS