Maryland Life Insurance
- Learn everything you need to know about Maryland life insurance, including protections available for consumers and who to contact for further information.
Changes in life, such as purchasing a house, getting married, having children or retiring, often cause people to consider their financial situations. A good life insurance policy can help you protect your loved ones if the worst happens, and for many people, it can also help save money for the future. Regulation of this industry is left in the hands of state governments, so it’s important to understand Maryland life insurance rules and how they can help you make the best decision for your circumstances.
Maryland Life Insurance Rules and Specifics
Life insurance in Maryland is regulated under Title 31 of the Code of Maryland Regulations. These regulations are intended to protect consumers and define what insurers can and cannot do in the state.
Protections in the regulations include:
- Free look laws: Policyholders can cancel their life insurance within 10 days of purchasing and receive a full refund.
- Grace period laws: If a policyholder misses a payment, insurers can’t immediately cancel their policy. The policyholder has a 30-day grace period to make the payment before losing their insurance coverage.
- Timely claim payment laws: Insurers have 30 days after a claim is made to provide the benefit to the beneficiary. If they’re late paying, the account will accrue interest
- Insurance Guaranty: If your insurance provider goes out of business, this guarantee allows you to collect up to $300,000 in benefits.
Protections for Beneficiaries
Maryland also has some protections for beneficiaries, especially when it comes to retained asset accounts, or RAAs. These accounts temporarily keep your funds after you make a claim, giving you time to make an informed decision about how to use the money. The accounts also earn interest.
If a Maryland insurer offers an RAA, they must also provide you with at least one other option for accepting your money and a written disclosure that describes all available options. Finally, the provider must tell you all the important information about the banking services available through the RAA.
Life Insurance Resources in Maryland
Maryland Insurance Administration
The Maryland Insurance Administration regulates insurance providers in the state and has a wide range of information available to help consumers. People interested in purchasing life insurance can find a consumer guide on its website along with more detailed information about topics such as life insurance for military personnel, selling life insurance and consumer advisories. You can also file a complaint against a provider through the administration's website.
Maryland Life & Health Insurance Guaranty Corporation
The Maryland Life & Health Insurance Guaranty Corporation is the entity that backs life and health insurance policies in the state. If your provider goes out of business, it’s the corporation that provides coverage. In most cases, your policy is transferred to another company, though the corporation may provide coverage directly. The website provides answers to frequently asked questions and has contact information if you require further information about its functions.