SB 139

WES MOORE, Governor  Ch. 142
Chapter 142
  (Senate Bill 139)
AN ACT concerning
  Insurance – Third Party Administrators – Enforcement
FOR the purpose of altering the grounds on which the Maryland Insurance Commissioner
     may deny an applicant for registration as or refuse to renew, suspend, or revoke the
     registration of a third party administrator; altering the violations for which the
     Commissioner may impose civil penalties against a third party administrator; and
     generally relating to third party administrators.
BY repealing and reenacting, with amendments,
      Article – Insurance
      Section 8–309(a) and 8–320(c)
      Annotated Code of Maryland
      (2017 Replacement Volume and 2025 Supplement)
      SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
  Article – Insurance
8–309.
       (a)    Subject to the hearing provisions of Title 2 of this article, the Commissioner
may deny a registration to an applicant or refuse to renew, suspend, or revoke the
registration of a registrant if the applicant or registrant:
  (1)   makes a material misstatement in an application for registration;
  (2)   fraudulently or deceptively obtains or attempts to obtain a registration
for the applicant or registrant or for another;
  (3)   has been convicted of a felony or of a misdemeanor involving moral
turpitude;
  (4)   in connection with the administration of a plan or with activities on
behalf of a life insurer, commits fraud or engages in illegal or dishonest activities; [or]
  [violates any provision of this subtitle or a regulation adopted under it]
  (5)
HAS VIOLATED THIS ARTICLE OR ANOTHER LAW OF THE STATE THAT RELATES TO
INSURANCE; OR
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Ch. 142  2026 LAWS OF MARYLAND
  (6)
  KNOWINGLY FAILS TO COMPLY WITH A REGULATION ADOPTED BY
OR AN ORDER OF THE COMMISSIONER.
8–320.
       (c)    (1)    In addition to any other enforcement action taken by the Commissioner
under this section, the Commissioner may impose a civil penalty of not more than $10,000
for each violation of this [subtitle] ARTICLE COMMITTED BY AN ADMINISTRATOR.
  (2)   Notwithstanding paragraph (1) of this subsection, the Commissioner
may impose a civil penalty of not more than $1,000 per day for each day that a person is in
violation of § 8–303(a) of this subtitle.
  (3)   In determining the amount of the civil penalty imposed under this
subsection, the Commissioner shall consider:
  (i)     the seriousness of the violation;
  (ii)    the good faith of the violator;
  (iii)   the violator’s history of previous violations;
  (iv) the deleterious effect of the violation on the plan and its
participants and beneficiaries;
  (v)     the assets of the violator; and
  (vi)    any other factors that relate to the determination of a financial
penalty.
      SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.
Approved by the Governor, April 14, 2026.
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