Maryland Insurance Bill Makes it a Fraudulent Act to Compensate for Deductible


Senate Bill 736 will enacted as Code of Maryland Insurance Article § 27-407.2. It repeals and replaces §§ 27-408(a) and (b). The bill makes it a “fraudulent insurance act for a person to pay or otherwise compensate, directly or indirectly, or offer or promise to pay or compensate, and insured for all or part of an insurance deductible provided under the policy as in inducement to enter into a contract to furnish goods or services.” The new section also specifically references contractors who are preforming repairs to a private residence caused by weather, “when the services will be made from the proceeds of the policy.”

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