2013 Maryland Code
INSURANCE
§ 27-504 - Discrimination based on domestic violence

§27-504.

(a) (1) In this section the following words have the meanings indicated.

(2) “Abuse” has the meaning stated in § 4-501 of the Family Law Article.

(3) “Cohabitant” means an individual who has had a sexual relationship with another individual with whom the individual has resided for a period of at least 90 days.

(4) “Victim of domestic violence” means an individual who:

(i) has received deliberate, severe, and demonstrable physical injury from a current or former spouse or current or former cohabitant; or

(ii) is in fear of imminent deliberate, severe, and demonstrable physical injury from a current or former spouse or current or former cohabitant.

(b) Except as otherwise provided in this article, if an individual is a victim of domestic violence or subject to abuse, an insurer, nonprofit health service plan, or health maintenance organization may not use information about abuse or the individual’s status as a victim of domestic violence to:

(1) cancel, refuse to underwrite or renew, or refuse to issue a policy of life insurance or health insurance or a health benefits plan;

(2) refuse to pay a claim, cancel, or otherwise terminate a policy of life insurance or health insurance or a health benefits plan;

(3) increase rates for life insurance, health insurance, or a health benefits plan; or

(4) for policies of life insurance or health benefits plans, add a surcharge, apply a rating factor, or use any other underwriting practice that adversely takes the information into account.

(c) If an insurer acts in good faith, the insurer is not subject to tort liability for a cause of action arising from the insurer’s lawful issuance of and lawful compliance with a policy of life insurance on an insured who subsequently suffers abuse or is a victim of domestic violence.

(d) This section does not require an insurer:

(1) to make a payment to an individual who willfully caused an injury that gave rise to a loss under a policy of life insurance; or

(2) to issue, without the consent of the proposed insured, life insurance or disability income insurance to an applicant known to have abused the proposed insured.

(e) This section may not be interpreted to preclude an insurer from using mental or physical medical conditions, regardless of cause, in determining the eligibility, rate, or underwriting classification of the applicant or insured.

§ 27-504 - 1. Prohibition against discrimination against victims of crimes of violence

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Crime of violence" has the meaning stated in § 14-101 of the Criminal Law Article.

(3) "Victim" means a policyholder or claimant who suffers personal injury, death, or property loss as a result of a crime of violence.

(b) Prohibition. -- Except as otherwise provided in this article, if an individual is a victim of a crime of violence, an insurer may not, based solely on information about the individual's status as a victim of a crime of violence:

(1) cancel, refuse to underwrite or renew, or refuse to issue a policy of homeowner's insurance;

(2) refuse to pay a claim under a policy of homeowner's insurance; or

(3) for a policy of homeowner's insurance, increase a premium, add a surcharge, apply a rating factor, retier a policy, remove a discount, or take any other adverse underwriting or rating action.

(c) Prohibition -- Exclusion of coverage for intentional acts; exception. --

(1) If a policy of homeowner's insurance excludes property coverage for intentional acts, the insurer may not deny payment for a loss to a victim who:

(i) is an innocent coinsured;

(ii) did not commit, cause to be committed, or direct the crime of violence leading to the loss; and

(iii) cooperates in any criminal investigation, including the filing of an official police report, and if undertaken, any prosecution of the perpetrator.

(2) Payment to the innocent coinsured may be limited to the amount of the loss up to the homeowner's insurance policy limits, less any applicable deductible and coinsurance and any payment to any secured party.

(3) An insurer may exclude property owned solely by the perpetrator from coverage under the policy of homeowner's insurance.

(4) An insurer making payment to the innocent coinsured under this section shall have the right of subrogation against the perpetrator who committed, caused to be committed, or directed the crime of violence leading to the loss.

(d) Other actions not limited. -- This section does not:

(1) require payment in excess of a homeowner's insurance policy limits;

(2) prohibit an insurer from applying reasonable standards of proof of a claim; or

(3) prohibit an insurer or insurance producer from:

(i) asking an applicant, a policyholder, or a claimant about a claim under this section; or

(ii) using information obtained by investigation to evaluate a claim and exercise the insurer's rights and perform its duties.