Insurance companies and insurance professionals operate in a heavily-regulated environment, subject to numerous statutes and regulatory obligations. Even well-intentioned insurers, agencies, and producers can find themselves facing questions, audits, or formal investigations and enforcement actions by the Maryland Insurance Administration, often with little warning. Continue reading and reach out to the Maryland insurance lawyers here at Brown & Bullock, LLC to learn more.

What is the Maryland Insurance Administration (MIA)?

The Maryland Insurance Administration is the state agency charged with regulating the insurance industry and enforcing Maryland’s insurance laws. The MIA serves Maryland consumers and serves as the gatekeeper for who is allowed to operate in the state’s insurance marketplace and under what conditions. The MIA has oversight over a wide range of entities and professionals, including, among other:

Insurance companies approved and certified to engage in Maryland insurance business
Insurance producers and agencies
Insurance advisers
Public adjusters
Adjusters and appraisers
Other insurance-related entities subject to state regulation

What is an MIA Investigation?

An MIA investigation is a regulatory inquiry into whether an action or business practice of an insurer or insurance professional is in compliance with the Maryland Insurance Article and regulations.

It’s important to distinguish routine oversight from a formal investigation. Routine oversight may involve license application issuance and renewals, periodic filings, or scheduled market conduct examinations. An investigation, however, is typically triggered by a specific concern. MIA investigations may seek to determine whether, among other things:

Claims were handled in accordance with the law
Policy language, rates, or marketing materials comply with Maryland law
Professional licensing requirements have been satisfied
Contractual and ethical requirements for professional insurance services have been met and are being followed
Required disclosures or filings were accurate and timely

What Can Warrant a Maryland Insurance Administration Investigation?

There is no single reason an MIA investigation begins, but certain events tend to raise red flags. Common triggers include, but are not limited to:

Consumer complaints regarding the practices of a specific insurance professional
Multiple complaints suggesting a broader pattern or practice
Allegations of misrepresentation during the sale of insurance
Failure to submit required reports or regulatory filings
Licensing lapses or appointment irregularities
Referrals from other state or federal agencies

Types of MIA Enforcement Actions

Once the MIA believes that violations may have occurred, it has significant enforcement authority. Enforcement actions are designed to correct conduct, deter future violations, and protect the public. Common enforcement tools used by the MIA include:

Administrative charges and formal enforcement proceedings
Civil penalties and fines
License suspension or revocation
Restrictions or conditions placed on licensure
Consent orders resolving alleged violations
Restitution orders requiring payment to consumers
Mandatory corrective action plans

Responding to MIA Investigations & Enforcement Actions

A response to an MIA request for information in an investigation is an opportunity to make a first impression. A well-formulated response can help dictate the trajectory of the investigation. Our attorneys have substantial experience identifying potential issues that may lead to an enforcement action, allowing responses to be accurate, timely and strategic.

Enforcement actions are typically preceded by an order by the Maryland Insurance Administration. Timely responses to such orders are critical, as the failure to timely challenge an order may result in the waiver of your ability to challenge the order or request a hearing. We have years of experience representing insurers, insurance professionals, and related businesses facing enforcement actions before the MIA.

Contact Brown & Bullock, LLC

If you’re facing an investigation or enforcement action before the MIA, our legal team is here to help. Contact Brown & Bullock, LLC today.