Increase in Maximum Civil Penalties for Violations of Certain Insurance Laws

BULLETIN 24-20 DATE: August 7, 2024 TO: Insurance Producers and Public Adjusters RE: Increase in Maximum Civil Penalties for Violations of Certain Insurance Laws The Maryland Insurance Administration (the “Administration”) is issuing this Bulletin to notify insurance producers and public adjusters that 2024 Maryland Laws Ch. 119 and 120 (House Bill 67 and Senate Bill 229 of the 2024 Legislative Session),1 which increase maximum civil penalties that the Administration may impose for certain statutory violations, will become effective on October 1, 2024. These Session Laws amend §§ 4–212, 10–126, and 10–410 of the Insurance Article2 as described below. The maximum civil penalty that the Administration may impose upon an unauthorized insurer or person for each violation of Title 4, Subtitle 2 of the Insurance Article pursuant to § 4–212 will increase from $50,000 to $125,000. The maximum monetary penalty that the Administration may impose upon a licensed insurance producer for each violation of the Insurance Article pursuant to § 10-126(c) will increase from $500 to $5,000. The maximum monetary penalty that the Administration may impose upon a licensed public adjuster for each violation of the Insurance Article pursuant to § 10-410(c) will increase from $500 to $5,000. Questions about this Bulletin may be directed to the Insurance Fraud and Producer Enforcement Division by phone at 1-800-846-4069, or by email to enforcement.mia@maryland.gov. 1 Access House Bill 67 at https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb0067?ys=2024RS and Senate Bill 229 at https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0229?ys=2024RS. 2 Statutes referenced in this Bulletin are within the Insurance Article of the Annotated Code of Maryland. JOY Y. HATCHETTE Acting Commissioner ROBERT GUYNN Associate Commissioner Insurance Fraud and Producer Enforcement WES MOORE Governor ARUNA MILLER Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 1-800-846-4069 enforcement.mia@maryland.gov 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov Joy Y. Hatchette Acting Insurance Commissioner By: Signature on Original Robert Guynn Associate Commissioner Insurance Fraud and Producer Enforcement