Insurance - Third Party Administrators - Enforcement

SB 139 amends Maryland law to strengthen oversight of third-party administrators (TPAs) who manage insurance claims for employers or insurers. It expands grounds for the Insurance Commissioner to deny, suspend, or revoke a TPA’s registration (including violations of insurance laws or regulations) and updates civil penalty rules. The bill sets a maximum $10,000 penalty per violation for TPA misconduct, with daily penalties up to $1,000 for ongoing violations. Penalties are determined based on factors like violation severity, the TPA’s history, and harm to policyholders, ensuring enforcement considers context and impact.