Maryland 2022 Regular Session

Maryland Senate Bill SB992 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0992
6	6
7	7	SENATE BILL 992
8	8	D3 2lr2022
9	9
10	10	By: Senator Waldstreicher
11	11	Introduced and read first time: February 20, 2022
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Claim Against Estate of a Decedent – Service of Process 2
19	19
20	20	FOR the purpose of requiring an automobile insurer to accept service of process from a 3
21	21	third–party claimant if the person insured under the policy is deceased and no estate 4
22	22	is open and the third–party claimant agrees to cap recovery at applicable policy 5
23	23	limits; and generally relating to actions by third–party claimants against automobile 6
24	24	insurers. 7
25	25
26	26	BY renumbering 8
27	27	Article – Courts and Judicial Proceedings 9
28	28	Section 3–1701 10
29	29	to be Section 3–1702 11
30	30	Annotated Code of Maryland 12
31	31	(2020 Replacement Volume and 2021 Supplement) 13
32	32
33	33	BY adding to 14
34	34	Article – Courts and Judicial Proceedings 15
35	35	Section 3–1701 and 3–1703 16
36	36	Annotated Code of Maryland 17
37	37	(2020 Replacement Volume and 2021 Supplement) 18
38	38
39	39	BY repealing and reenacting, with amendments, 19
40	40	Article – Courts and Judicial Proceedings 20
41	41	Section 3–1702(a) through (c) 21
42	42	Annotated Code of Maryland 22
43	43	(2020 Replacement Volume and 2021 Supplement) 23
44	44	(As enacted by Section 1 of this Act) 24
45	45
46	46	BY repealing and reenacting, with amendments, 25
47	47	Article – Courts and Judicial Proceedings 26
48	48	Section 5–118 27 2 SENATE BILL 992
49	49
50	50
51	51	Annotated Code of Maryland 1
52	52	(2020 Replacement Volume and 2021 Supplement) 2
53	53
54	54	BY repealing and reenacting, with amendments, 3
55	55	Article – Insurance 4
56	56	Section 27–1001(b), (c)(1), (d)(1), and (h)(1) and (2) 5
57	57	Annotated Code of Maryland 6
58	58	(2017 Replacement Volume and 2021 Supplement) 7
59	59
60	60	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
61	61	That Section(s) 3–1701 of Article – Courts and Judicial Proceedings of the Annotated Code 9
62	62	of Maryland be renumbered to be Section(s) 3–1702. 10
63	63
64	64	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
65	65	as follows: 12
66	66
67	67	Article – Courts and Judicial Proceedings 13
68	68
69	69	3–1701. 14
70	70
71	71	IN THIS SUBTITLE, “INSURER” HAS THE MEANING STAT ED IN § 1–101 OF THE 15
72	72	INSURANCE ARTICLE. 16
73	73
74	74	3–1702. 17
75	75
76	76	(a) (1) In this [subtitle] SECTION the following words have the meanings 18
77	77	indicated. 19
78	78
79	79	(2) “Casualty insurance” has the meaning stated in § 1–101 of the 20
80	80	Insurance Article. 21
81	81
82	82	(3) “Commercial insurance” has the meaning stated in § 27–601 of the 22
83	83	Insurance Article. 23
84	84
85	85	(4) (i) “Disability insurance” means insurance that provides for lost 24
86	86	income, revenue, or proceeds in the event that an illness, accident, or injury results in a 25
87	87	disability that impairs an insured’s ability to work or otherwise generate income, revenue, 26
88	88	or proceeds that the insurance is intended to replace. 27
89	89
90	90	(ii) “Disability insurance” does not include payment for medical 28
91	91	expenses, dismemberment, or accidental death. 29
92	92
93	93	(5) “Good faith” means an informed judgment based on hone sty and 30
94	94	diligence supported by evidence the insurer knew or should have known at the time the 31
95	95	insurer made a decision on a claim. 32
96	96
97	97	(6) [“Insurer” has the meaning stated in § 1–101 of the Insurance Article. 33 SENATE BILL 992 3
98	98
99	99
100	100
101	101	(7)] “Property insurance” has the meaning stated in § 1–101 of the 1
102	102	Insurance Article. 2
103	103
104	104	(b) This [subtitle] SECTION applies only to first–party claims under property and 3
105	105	casualty insurance policies or individual disability insurance policies issued, sold, or 4
106	106	delivered in the State. 5
107	107
108	108	(c) (1) Except as provided in paragraph (2) of this subsection, a party may not 6
109	109	file an action under this [subtitle] SECTION before the date of a final decision under § 7
110	110	27–1001 of the Insurance Article. 8
111	111
112	112	(2) Paragraph (1) of this subsection does not apply to an action: 9
113	113
114	114	(i) Within the small claim jurisdiction of the District Court under § 10
115	115	4–405 of this article; 11
116	116
117	117	(ii) If the insured and the insurer agree to waive the requirement 12
118	118	under paragraph (1) of this subsection; or 13
119	119
120	120	(iii) Under a commercial insurance policy on a claim with respect to 14
121	121	which the applicable limit of liability exceeds $1,000,000. 15
122	122
123	123	3–1703. 16
124	124
125	125	(A) IN THIS SECTION , “THIRD–PARTY CLAIMANT ” MEANS ANY PERSON 17
126	126	ASSERTING A CLAIM AG AINST A PERSON INSUR ED UNDER AN AUTOMOBI LE 18
127	127	INSURANCE POLICY . 19
128	128
129	129	(B) THE INSURER FOR AN AUTOMOBILE INSURA NCE POLICY SHALL ACC EPT 20
130	130	SERVICE OF PROCESS FROM A THIRD–PARTY CLAIMANT IF : 21
131	131
132	132	(1) THE PERSON INSURED UN DER THE AUTOMOBILE I NSURANCE 22
133	133	POLICY IS DECEASED AND THERE IS NOT AN ESTA TE OF THE PERSON THA T IS OPEN; 23
134	134	AND 24
135	135
136	136	(2) THE THIRD–PARTY CLAIMANT AGREE S TO CAP RECOVERY AT 25
137	137	APPLICABLE POLICY LI MITS. 26
138	138
139	139	5–118. 27
140	140
141	141	For the purposes of this subtitle, the filing of a complaint with the Maryland 28
142	142	Insurance Administration in accordance with § 27–1001 of the Insurance Article shall be 29
143	143	deemed the filing of an action under [§ 3–1701] § 3–1702 of this article. 30
144	144
145	145	Article – Insurance 31 4 SENATE BILL 992
146	146
147	147
148	148
149	149	27–1001. 1
150	150
151	151	(b) This section applies only to actions under [§ 3–1701] § 3–1702 of the Courts 2
152	152	Article. 3
153	153
154	154	(c) (1) Except as provided in paragraph (2) of this subsection, a person may 4
155	155	not bring or pursue an action under [§ 3–1701] § 3–1702 of the Courts Article in a court 5
156	156	unless the person complies with this section. 6
157	157
158	158	(d) (1) A complaint stating a cause of action under [§ 3–1701] § 3–1702 of the 7
159	159	Courts Article shall first be filed with the Administration. 8
160	160
161	161	(h) On or before January 1 of each year beginning in 2009, in accordance with § 9
162	162	2–1257 of the State Government Article, the Administration shall report to the General 10
163	163	Assembly on the following for the prior fiscal year: 11
164	164
165	165	(1) the number and types of complaints under this section or [§ 3–1701] § 12
166	166	3–1702 of the Courts Article from insureds regarding first–party insurance claims under 13
167	167	property and casualty insurance policies; 14
168	168
169	169	(2) the number and types of complaints under this section or [§ 3–1701] § 15
170	170	3–1702 of the Courts Article from insureds regarding first–party insurance claims under 16
171	171	individual disability insurance policies; 17
172	172
173	173	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to 18
174	174	apply only prospectively and may not be applied or interpreted to have any effect on or 19
175	175	application to any claim that accrues before the effective date of this Act. 20
176	176
177	177	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
178	178	October 1, 2022. 22
179	179