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MD HB1069
Bill
Status
5/6/2025
Primary Sponsor
Teresa Woorman
Click for details
AI Summary
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Prohibits insurance carriers from including "discretionary clauses" in health insurance, life insurance, annuity contracts, disability insurance, and HMO contracts sold or delivered in Maryland
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Discretionary clauses are provisions that reserve sole authority to the carrier to interpret policy terms or establish interpretation/review standards inconsistent with state law
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Expands the definition of "carrier" to include health maintenance organizations (HMOs) alongside insurers and nonprofit health service plans
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Applies to all policies, contracts, and health benefit plans issued, delivered, or renewed in Maryland on or after January 1, 2026
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Takes effect October 1, 2025; approved by Governor Wes Moore on May 6, 2025
Legislative Description
Life and Health Insurance Policies and Annuity and Health Maintenance Organization Contracts - Discretionary Clauses - Prohibition
Insurance
Last Action
Approved by the Governor - Chapter 396
5/6/2025