Maryland Statutes
Subtitle 2 - Unfair Methods of Competition and Unfair and Deceptive Acts or Practices
Section 27-221 - Prohibition Against Reunderwriting

(a)    (1)    In this section the following words have the meanings indicated.
        (2)    “Carrier” means a person that is:
            (i)    an insurer that holds a certificate of authority in the State and provides health insurance in the State;
            (ii)    a health maintenance organization that holds a certificate of authority to operate in the State; or
            (iii)    a nonprofit health service plan that holds a certificate of authority to operate in the State.
        (3)    “Health coverage” means any of the following:
            (i)    a health insurance contract that is issued or delivered in the State by an insurer;
            (ii)    a contract that is issued or delivered in the State by a nonprofit health service plan; or
            (iii)    a contract that is issued or delivered in the State by a health maintenance organization.
        (4)    “Health status-related factor” has the meaning stated in § 15-1301 of this article.
        (5)    “Individual contract” means a contract between a carrier and an individual covering:
            (i)    the individual;
            (ii)    the individual and the individual’s family members; or
            (iii)    the family members of the individual.
        (6)    (i)    “Reunderwrite” means to reevaluate any health status-related factor, occupation, hobby, or activity of an individual for the purpose of:
                1.    terminating health coverage of the individual; or
                2.    moving the individual from a more favorable rate class to a less favorable rate class.
            (ii)    “Reunderwrite” does not include:
                1.    moving an individual from one rate tier to another rate tier solely due to the addition or deletion of a family member under the health coverage;
                2.    increasing the premium under an attained age rated contract solely due to the increasing age of the individual covered under the health coverage;
                3.    on receipt of an application from an insured to increase the benefits under an existing contract, evaluating the health status-related factors, occupation, hobbies, or activities of the insured for the purpose of increasing the benefits under the contract; or
                4.    during the period in which a carrier has the right to contest a policy, denying a claim, amending the policy, making an adjustment to the premium, or rescinding the policy based on a material misrepresentation or fraud in the application.
    (b)    A carrier may not reunderwrite an individual for health coverage under an individual contract after the individual contract has been issued.