(a) Subject to subsections (b) through (e) of this section, disability insurance
and short-term medical insurance under § 3-302(c) of this subtitle may be procured
from a nonadmitted insurer if the coverage procured is in excess of coverage available
from, or is not available from, an admitted insurer that writes that particular kind
and class of insurance in the State.
(b) Procurement of disability insurance under this section from a
nonadmitted insurer is subject to:
(1) the diligent search requirements of §§ 3-306 and 3-306.1 of this
subtitle; and
(2) all other requirements of this subtitle.
(c) Procurement of short-term medical insurance under this section from a
nonadmitted insurer is subject to:
(1) a policy term that:
(i) is less than 3 months; and
(ii) may not be extended or renewed;
(2) the provision of written notice to the applicant, on a form
approved by the Commissioner:
(i) stating that coverage may be available under the
Affordable Care Act without medical underwriting;
(ii) providing contact information for the Maryland Health
Benefit Exchange;
(iii) stating that the short-term medical insurance may be
available from an admitted insurer;
(iv) stating that similar coverage may be available from an
admitted insurer offering travel insurance, as defined in § 10-101 of this article; and
(v) displaying prominently in the contract and in any
application materials provided in connection with enrollment in the coverage in at
least 14 point type the following: "This is not qualifying health coverage ("minimum
essential coverage") that satisfies the health coverage requirements of the Affordable
Care Act. If you don't have minimum essential coverage, you may owe an additional
payment with your taxes.";
(3) the diligent search requirements of §§ 3-306 and 3-306.1 of this
subtitle; and
(4) all other requirements of this subtitle.
(d) Short-term medical insurance may not be procured from a nonadmitted
insurer unless:
(1) the insurance is procured through a qualified surplus lines
broker;
(2) if the insurance is offered on a Web site on the Internet, the Web
site identifies the qualified surplus lines broker through whom the insurance may be
procured; and
(3) the diligent search required under §§ 3-306 and 3-306.1 of this
subtitle includes a search of the short-term medical insurance policies offered for sale
by admitted insurers.
(e) A short-term medical insurance policy procured from a nonadmitted
insurer may not include:
(1) a preexisting condition exclusion, unless the exclusion relates to
a condition that was first manifested, treated, or diagnosed before the effective date
of the policy; or
(2) a definition of sickness or illness that excludes any sickness or
illness that began, existed, or had its origin before the effective date of the policy,
unless the sickness or illness was first manifested, treated, or diagnosed before the
effective date of the policy.
(f) The Commissioner shall develop and make available on the
Administration's Web site a consumer guide on short-term medical insurance that
includes information on:
(1) the availability of coverage from admitted insurers; and
(2) the types of coverage and provisions in short-term medical
insurance policies that may be important to consumers.‹ Prev All Maryland sections Next ›
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