Maryland Code, INSURANCE 15-1106
Terms Used In Maryland Code, INSURANCE 15-1106
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
(2) “Carrier” means:
(i) an insurer;
(ii) a nonprofit health service plan; or
(iii) a health maintenance organization.
(3) “Evidence of individual insurability” has the meaning stated in § 15-1105 of this subtitle.
(4) “Health benefit plan” has the meaning stated in § 15-1301 of this title.
(b) If a carrier conditions coverage for a health benefit plan on evidence of individual insurability, the carrier may not rescind a contract or a certificate on the basis of written information submitted on or with, or omitted from, an application for the health benefit plan unless the carrier completed medical underwriting and resolved all reasonable medical questions related to the written information submitted on or with, or omitted from, the application before issuing the health benefit plan.
(c) The carrier shall have the burden of persuasion that its rescission of a health benefit plan complies with subsection (b) of this section.