Maryland Life Insurance

Maryland life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Maryland life insurance regulations.

  • Explains the protection of the Maryland Guaranty Association.

  • Links to more information about life insurance in Maryland

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Maryland life insurance rights and regulations

Life insurance in Maryland is regulated by the state's official insurance code. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such protection lies in the required 30-day grace period on late premium payments. During this window, insurers in Maryland cannot cancel a life insurance policy, and coverage will continue uninterrupted so long as the account is brought current.

Maryland insurers are also obligated to settle claims promptly. Any benefits not paid within 30 days of proper documentation will begin accruing interest (which will be included in the final settlement).

However, Maryland law offers some protections to insurers, too. Inaccurate statements made on the policy or application, if discovered within the first two years, can be grounds for policy cancellation. Claims don't have to be honored, and purposeful misrepresentation can be considered fraud and prosecuted.

A misstatement of age can be discovered by the insurance company at any point during the life of a policy. In this case, the benefits will likely be adjusted to reflect the actual age of the insured.

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If you are ready to apply for a Maryland term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Maryland Life Insurance Guaranty

Most Maryland life insurance policyholders are covered by the Maryland Life and Health Insurance Guaranty Association. This fund helps protect the consumer in cases of insurance company insolvency. As long as your insurer is licensed in Maryland, the association will help compensate you if your policy is lost due to insurer bankruptcy.

However, there are some restrictions on this protection. Compensation for lost death benefit proceeds cannot exceed $300,000 per insured individual. This limit holds even on multiple policies with coverage totalling more than $300,000.

And to qualify, your insurance company must be licensed in Maryland. You can check the status of an insurer with the Maryland Insurance Administration by either calling 410-468-2000 or 1-800-492-6116 in Maryland.

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Apply for a quote with confidence at Efinancial
(for Maryland term life insurance), or InsureME.
Your insurer will be licensed in Maryland.

More MD life insurance help

If you want more help getting the best value on your MD life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about MD life insurance laws and regulations, visit the official website of the Maryland Insurance Administration.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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