Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
After a collision in Maryland, your insurer must investigate and resolve your claim fairly and promptly. The Maryland Insurance Code prohibits unreasonable delay or denial of claims without a proper basis. Key statutes include:
- Md. Code Ins. § 27-303 – Unfair claim settlement practices.
- Md. Code Ins. § 27-304 – Prompt acknowledgment and decision on claims.
- Md. Code Ins. § 27-1001 – Implied duty of good faith and fair dealing.
If your insurer delays or denies payment without a reasonable explanation, consider these steps:
- Review Your Policy: Confirm your coverage limits, deductibles, and deadlines for filing proof of loss. Note any requirements for documentation or appraisal.
- Request Claim Status in Writing: Send a certified letter or email asking for a written explanation of the delay or denial. Cite § 27-303 and § 27-304 to remind the insurer of its obligations.
- Gather Evidence: Collect photos, repair estimates, police reports, medical records, and witness statements to counter the insurers reasons for denial or delay.
- Send a Formal Demand Letter: Draft a letter that outlines the facts, the policy terms, the insurers duties under Maryland law, and a deadline for payment (typically 30 days). An insurer that fails to respond may violate the implied covenant of good faith and fair dealing under § 27-1001.
- File a Complaint with the Maryland Insurance Administration (MIA): The MIA investigates unfair claim practices. You can submit a complaint online at insurance.maryland.gov. Include all correspondence, policy pages, and evidence.
- Consider Bad Faith Litigation: If the insurer persists in unreasonable denials or delays, you may file a first-party bad faith lawsuit. Maryland courts allow recovery of policy benefits, interest, attorneys fees, and potentially punitive damages for bad-faith conduct under Md. Code Ins. § 27-1001.
Helpful Hints
- Document every phone call and letter with date, time, and the name of the insurance representative.
- Keep a claim file folder (physical or digital) for all medical, repair, and expense receipts.
- Follow up promptly after insurer requests additional information; delays in your response can give insurers room to stall.
- Ask for an appraisal or umpire process if the insurer disputes the value of property damage.
- Consult an attorney early if the insurer denies payment or offers a low settlement.
- Stay informed: review the MIAs consumer guides at insurance.maryland.gov.