Election Law - Absentee Ballots - State and Federal Requirements
Summary
HB1069 prohibits the use of discretionary clauses in certain insurance-related contracts in Maryland. Specifically, it bars health insurance policies, life insurance policies, annuity contracts, health maintenance organization (HMO) contracts, and disability insurance policies from containing language that gives the carrier sole discretion to interpret the policy terms or to apply standards of interpretation or review that conflict with Maryland law.
The bill also makes clear that the prohibition applies to HMOs by adding a new provision in the Health-General Article and expanding the definition of “carrier” in the Insurance Article to include HMOs. The law applies to policies, contracts, and health benefit plans issued, delivered, or renewed on or after January 1, 2026, and takes effect October 1, 2025.
Impact
The bill amends Maryland insurance law by expanding the existing discretionary-clause prohibition in Insurance § 12-211 and cross-referencing that rule to HMOs in Health-General § 19-706. As a result, insurers, nonprofit health service plans, and HMOs may no longer include contract language that reserves unilateral interpretive authority to the carrier, which is intended to limit insurer-favorable interpretations in coverage disputes and align review standards with Maryland law.
Sentiment
The available voting history suggests broad bipartisan support and little controversy. The bill passed the House and Senate unanimously, with recorded votes of 137-0 and 47-0, respectively. No committee transcript material is provided, but the unanimous votes indicate the measure was generally viewed favorably across both chambers.
Contention
There is no recorded opposition in the provided materials, and no committee discussion is available to identify specific objections. The main policy issue addressed by the bill is whether carriers should be allowed to write contracts that give them sole discretion to interpret policy terms; the bill resolves that issue against carriers by prohibiting such clauses. The only notable implementation point is the delayed applicability date for new and renewed policies beginning January 1, 2026.