2019 Maryland Code
Insurance
Title 27 - Unfair Trade Practices and Other Prohibited Practices
Subtitle 2 - Unfair Methods of Competition and Unfair and Deceptive Acts or Practices
§ 27-210. Effect of Sections 27-208 and 27-209 of this subtitle

    (a)    Sections 27–208 and 27–209 of this subtitle may not be construed to include within the definition of discrimination or rebates any of the practices set forth in this section.

    (b)    For a contract of life insurance or an annuity contract, it is not discrimination or a rebate to pay bonuses to policyholders or otherwise abate their premiums wholly or partly out of the surplus accumulated from nonparticipating insurance, if the bonuses or abatement of premiums is fair, equitable to, and in the best interest of policyholders.

    (c)    For policies of life insurance or health insurance issued on the industrial debit, preauthorized check, bank draft, or similar plans, it is not discrimination or a rebate to make an allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer or by preauthorized check, bank draft, or similar plans in an amount that fairly represents the savings in collection expense.

    (d)    It is not discrimination or a rebate to readjust the rate of premium for a group policy based on the loss or expense experience under the policy, at the end of any policy year, retroactive only for that policy year.

    (e)    It is not discrimination or a rebate to reduce the premium rate for policies of large amount, if the reduction does not exceed savings in issuance and administrative expenses reasonably attributable to policies of large amount as compared with policies of similar plan issued in smaller amounts.

    (f)    It is not discrimination or a rebate to issue policies of life insurance or health insurance or annuity contracts on a salary savings or payroll deduction plan or other distribution plan at a reduced rate reasonably commensurate with the savings made by use of the plan.

    (g)    It is not discrimination or a rebate to issue policies of health insurance that provide for increases in benefits to policyholders who maintain their policies continuously in force without lapse for specified periods.

    (h)    (1)    In this subsection, “wellness program” means a program that:

            (i)    meets the requirements of a participatory wellness program or a health–contingent wellness program under § 15–509 of this article; and

            (ii)    is provided as a benefit outside of the health insurance or health maintenance organization contract.

        (2)    It is not discrimination or a rebate for a carrier to provide reasonable incentives to an individual who is an insured, a subscriber, or a member for participation in a wellness program offered by the carrier.

        (3)    Any incentive offered for participation in a wellness program:

            (i)    shall be reasonably related to the wellness program; and

            (ii)    may not have a value that exceeds any limit established in regulations adopted by the Commissioner.

        (4)    The Commissioner shall adopt regulations to implement the provisions of this subsection.