Insurance Administrative Hearings & Appeals

Insurance disputes do not always unfold inside a traditional courtroom. In many situations, disagreements involving insurance companies or licensed professionals are first addressed through the administrative system in contested administrative hearings. While such hearings are not conducted in a traditional courtroom, the stakes are just as high, as such hearings frequently carry serious consequences, including license suspensions, revocations, fines and other penalties.  If you’re facing a contested insurance administrative hearing, it’s paramount that you have a team of seasoned Maryland insurance attorneys in your corner. Contact Brown & Bullock, LLC for an initial consultation today.

What Are Insurance Administrative Hearings?

Insurance administrative hearings are formal proceedings held within the state’s administrative framework instead of within the state’s civil court system. These hearings typically arise when a regulatory authority takes action against an insurer or insurance professional, or when a regulated party challenges a decision issued by an insurance regulator.

Although administrative hearings are not held within a Maryland state court, they are still legal proceedings that require the assistance of a knowledgeable attorney. Evidence is presented at these hearings, witnesses may testify, legal arguments are made, and written records are created. In many respects, the process closely resembles litigation, with long-term consequences if not handled properly.

Who Oversees Insurance Administrative Hearings in Maryland?

Insurance administrative hearings are generally overseen by the Maryland Insurance Administration (“MIA”). The MIA is the state agency responsible for regulating the insurance industry and enforcing insurance laws.

Depending on the type of matter, hearings may be conducted directly by the MIA or referred to the Office of Administrative Hearings, where an administrative law judge presides over the case. Regardless of who conducts the hearing, the authority exercised comes from Maryland statutes and regulations that govern insurance regulation and administrative procedure. Once a decision has been rendered, a party’s ability to challenge that decision may be significantly limited in subsequent appeals. Retaining counsel to represent your interests during a hearing is critical, as an adverse decision can have long term-licensing and financial effects.

Types of Insurance Matters That May Lead to Administrative Hearings

Insurance administrative hearings are generally only available upon request, and must be made timely.  Many begin after an order has been issued against an insurer or insurance professional, with findings of noncompliance with insurance laws and a sanction.  Sanctions can range from fines to licensure revocation. A hearing may be requested on matters arising from matters including, but not limited to:

• Denial of insurance licenses or license renewals
• Allegations of professional misconduct by producers or adjusters
• Claims of unfair trade practices
• Violations involving policy forms, rates, required filings or contracts for professional insurance services

The Insurance Administrative Hearing Process

Of course, the exact process can vary depending on the nature of the case, but most insurance administrative hearings tend to follow a similar structure. In most cases, the process includes:

• Issuance of an order
• A limited window to request a hearing
• Pre-hearing procedures, which may include motions and discovery
• The administrative hearing itself
• Submission of post-hearing briefs or written arguments
• Issuance of a written decision

Appealing an Insurance Decision in Maryland

A party aggrieved by a decision at a contested administrative hearing may file a petition for judicial review in the Maryland circuit courts.  Petitions for judicial reviews are not a second change to present new evidence.  Such petitions are typically limited to the record, and review whether errors occurred during the hearing itself.

Following the judicial review process, a party may appeal to the Maryland appellate courts to challenge the results of the judicial review.  Because of the limited nature of appeals from contested administrative hearings, it is critical to consult with an attorney early in the process to preserve your appellate rights.

Contact Brown & Bullock for Assistance With Insurance Administrative Hearings & Appeals

Whether the issue you’re facing involves licensing, enforcement, or regulatory compliance, these proceedings can directly affect your professional standing. Brown & Bullock proudly represents clients throughout the administrative and appellate process, and we’re here to effectively advocate for your interests. Contact us for an initial consultation today so we can discuss your case.