Detailed Answer
When you file an insurance claim in Maryland, the insurer usually responds with an initial settlement offer. That number often reflects the insurer’s goal to minimize its payout. Presenting a well-documented counteroffer can shift negotiations in your favor. Below are key considerations under Maryland law:
1. Understand Maryland’s Claims Settlement Standards
Maryland law requires insurers to investigate and settle claims in good faith. Under Md. Code Ann., Ins. § 27-303, insurers may not “fail to adopt and implement reasonable standards for the prompt investigation of claims” or “refuse to pay claims without conducting a reasonable investigation.”
Md. Ins. Code Ann. § 27-303
2. Gather Evidence Before Counteroffering
Strengthen your position with clear documentation:
- Medical records, bills, and expert opinions for injury claims.
- Repair estimates and invoices for property damage.
- Proof of lost wages (pay stubs, employer letters).
3. Calculate Your True Loss
Compile both economic and non-economic damages. Economic damages cover quantifiable costs. Non-economic damages—like pain and suffering—require reasonable estimation. You might multiply medical expenses by a factor between 1.5 and 5.0, depending on injury severity.
4. Drafting the Counteroffer
- Begin with a polite cover letter summarizing key facts.
- State your counteroffer clearly, typically 20–30% above your bottom line to allow room for compromise.
- Attach supporting documents: estimates, bills, photos.
- Request a response deadline (e.g., 14 days).
5. Leverage Maryland’s Prompt Payment Laws
Maryland insurers must acknowledge and act on claims “within 15 days” of receipt and “pay or deny” within 30 days of proof of loss (Md. Ins. Code Ann. § 27-202). If your counteroffer meets documented losses and the insurer unreasonably delays, you may have leverage to pursue additional penalties.
Helpful Hints
- Keep all correspondence in writing. Email or certified mail creates a paper trail.
- Stay realistic. Unrealistic demands may stall negotiations.
- Be prepared to negotiate. Expect at least one more round.
- Consult an attorney if the insurer refuses to negotiate in good faith or denies your claim without justification.
Disclaimer
This article provides general information about Maryland law. It does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.