NOTE: The format of the AAIS Advisory has changed, starting in June 2012. Notices are now posted individually as they arise, then combined in a periodic email message.
A recent bulletin from the Maryland Insurance Administration (MIA) notifies insurers of a change in the administration's mandatory fraud disclosure language.
Effective Jan. 1, 2013, insurers must use the phrase "knowingly or willfully" (in place of "knowingly and willfully," as previously prescribed) when disclosing applicants' potential criminal liability on insurance applications.
According to the bulletin, a new statute in Maryland requires the following statement in all insurance applications: “Any person who knowingly or willfully presents a false or fraudulent claim for payment of a loss or benefit or who knowingly or willfully presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.
The revised language need not be filed unless the application(s) in question constitute part of the policy. AAIS programs do not require any filing action in this regard.
AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.