Section 27-305 - Penalties

(a) The Commissioner may impose a penalty: (1) not exceeding $2,500 for each violation of § 27–303 of this subtitle or a regulation adopted under § 27–303 of this subtitle; and (2) not exceeding $125,000 for each violation of § 27–303(9) of this subtitle or a regulation adopted under § 27–303(9) of this subtitle. (b) The penalty for a violation of § 27–304 of this subtitle is as provided in §§ 1–301, 4–113, and 4–114 of this article and § 27–103 of this title. (c) (1) On finding a violation of this subtitle, the Commissioner may require an insurer, nonprofit health service plan, or health maintenance organization to: (i) make restitution to each claimant who has suffered actual economic damage because of the violation; or (ii) provide to a claimant a payment that has been determined to be denied in violation of this subtitle. (2) Subject to paragraph (3) of this subsection, restitution may not exceed the amount of actual economic damage sustained, subject to the limits of any applicable policy. (3) For a violation of § 27–303(9) of this subtitle, the Commissioner may require restitution to an insured for the following: (i) actual damages, which actual damages may not exceed the

able policy. (3) For a violation of § 27–303(9) of this subtitle, the Commissioner may require restitution to an insured for the following: (i) actual damages, which actual damages may not exceed the limits of any applicable policy; (ii) expenses and litigation costs incurred by the insured in pursuing an administrative complaint under § 27–303(9) of this subtitle, including reasonable attorney’s fees; and (iii) interest on all actual damages, expenses, and litigation costs incurred by the insured computed: 1. at the rate allowed under § 11–107(a) of the Courts Article; and 2. from the date on which the insured’s claim would have been paid if the insurer acted in good faith. (4) The amount of attorney’s fees recovered from an insurer under paragraph (3) of this subsection may not exceed one–third of the actual damages recovered.