2021 Maryland Statutes
Insurance
Title 3 - Kinds of Insurers
Subtitle 3 - Surplus Lines Insurance
Section 3-306.2 - Disability Insurance and Short-Term Medical Insurance -- Nonadmitted Insurers

    (a)    Subject to subsections (b) through (e) of this section, disability insurance and short–term medical insurance under § 3–302(c) of this subtitle may be procured from a nonadmitted insurer if the coverage procured is in excess of coverage available from, or is not available from, an admitted insurer that writes that particular kind and class of insurance in the State.

    (b)    Procurement of disability insurance under this section from a nonadmitted insurer is subject to:

        (1)    the diligent search requirements of §§ 3–306 and 3–306.1 of this subtitle; and

        (2)    all other requirements of this subtitle.

    (c)    Procurement of short–term medical insurance under this section from a nonadmitted insurer is subject to:

        (1)    a policy term that:

            (i)    is less than 3 months; and

            (ii)    may not be extended or renewed;

        (2)    the provision of written notice to the applicant, on a form approved by the Commissioner:

            (i)    stating that coverage may be available under the Affordable Care Act without medical underwriting;

            (ii)    providing contact information for the Maryland Health Benefit Exchange;

            (iii)    stating that the short–term medical insurance may be available from an admitted insurer;

            (iv)    stating that similar coverage may be available from an admitted insurer offering travel insurance, as defined in § 10–101 of this article; and

            (v)    displaying prominently in the contract and in any application materials provided in connection with enrollment in the coverage in at least 14 point type the following: “This is not qualifying health coverage (“minimum essential coverage”) that satisfies the health coverage requirements of the Affordable Care Act. If you don’t have minimum essential coverage, you may owe an additional payment with your taxes.”;

        (3)    the diligent search requirements of §§ 3–306 and 3–306.1 of this subtitle; and

        (4)    all other requirements of this subtitle.

    (d)    Short–term medical insurance may not be procured from a nonadmitted insurer unless:

        (1)    the insurance is procured through a qualified surplus lines broker;

        (2)    if the insurance is offered on a Web site on the Internet, the Web site identifies the qualified surplus lines broker through whom the insurance may be procured; and

        (3)    the diligent search required under §§ 3–306 and 3–306.1 of this subtitle includes a search of the short–term medical insurance policies offered for sale by admitted insurers.

    (e)    A short–term medical insurance policy procured from a nonadmitted insurer may not include:

        (1)    a preexisting condition exclusion, unless the exclusion relates to a condition that was first manifested, treated, or diagnosed before the effective date of the policy; or

        (2)    a definition of sickness or illness that excludes any sickness or illness that began, existed, or had its origin before the effective date of the policy, unless the sickness or illness was first manifested, treated, or diagnosed before the effective date of the policy.

    (f)    The Commissioner shall develop and make available on the Administration’s Web site a consumer guide on short–term medical insurance that includes information on:

        (1)    the availability of coverage from admitted insurers; and

        (2)    the types of coverage and provisions in short–term medical insurance policies that may be important to consumers.