(a) Each policy that insures a health care provider against damages due to medical injury arising from providing or failing to provide health care shall contain provisions that:
(1) are consistent with the requirements of Title 3, Subtitle 2A of the Courts Article; and
(2) authorize the insurer, without restriction, to negotiate and effect a compromise of claims unless the settlement amount exceeds the limits of the insurer’s liability.
(b) (1) An insurer may make payments to or on behalf of claimants for reasonable hospital and medical costs, loss of wages, and expenses for rehabilitation services and treatment, within the limits of the insurer’s liability, before a final disposition of the claim.
(2) A payment made under this subsection:
(i) is not an admission of liability to or of damages sustained by a claimant; and
(ii) does not prejudice the insurer or any other party with respect to any right, claim, or defense.
(c) (1) A policy issued or delivered under subsection (a) of this section may include coverage for the defense of a health care provider in a disciplinary hearing arising out of the practice of the health care provider profession if the cost of the included coverage is:
(i) itemized in the billing statement, invoice, or declarations page for the policy; and
(ii) reported to the Commissioner in a form and manner required by the Commissioner.
(2) A policy providing coverage for the defense of a health care provider in a disciplinary hearing arising out of the practice of the health care provider’s profession may be offered and priced separately from a policy issued or delivered under subsection (a) of this section.
Structure Maryland Statutes
Title 19 - Property and Casualty Insurance
Subtitle 1 - General Provisions
Section 19-101 - Applicability of Other Laws
Section 19-102 - Provisions in Liability Policies for Payment of Loss and Bankruptcy of Insured
Section 19-103 - Immunity of Charitable Institution
Section 19-104 - Health Care Malpractice Insurance
Section 19-106 - Liability Coverage -- for Family Child Care Providers
Section 19-107 - Refusals to Issue or Renew Insurance Because of Location
Section 19-108 - Issuance of Vehicle Liability Policies on Assessable Basis Prohibited
Section 19-109 - Subrogation of Medical Expense Payments Prohibited
Section 19-110 - Disclaimers of Coverage on Liability Policies
Section 19-111 - Limitation on Preventing Recovery for Property Loss
Section 19-112 - Request by Bulletin
Section 19-113 - Settlement of Claims
Section 19-114 - Deductibles in Medical Malpractice Policies
Section 19-115 - Insurance Provider Panels
Section 19-116 - Certificates of Insurance and Certificate of Insurance Forms