Maryland Insurance Fraud Laws
Created by FindLaw's team of legal writers and editors | Last reviewed January 17, 2024
This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw’s team of legal writers and attorneys and in accordance with our editorial standards.
The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area.
Insurance fraud happens many different ways. Typically, insurance fraud occurs when someone tries to profit from an insurance transaction through lies or misrepresentations. Insurance providers can also violate insurance laws, for example by misrepresenting insurance during sales, inappropriately cancelling policies, or denying coverage.
Who Enforces and Prosecutes Insurance Fraud Laws?
State and local prosecutors in Maryland can handle insurance fraud cases under the criminal code. When insurance companies or agents act in bad faith and violate the insurance code regulations or consumers violate the insurance code, the matter can be handled by the Maryland Insurance Administration, for example by fining the insurer or consumer. If the insurance fraud involves federal criminal laws or crosses state lines, the federal government can also prosecute it. For example, if it involves mail fraud or racketeering, it's likely a federal crime.
Maryland Insurance Fraud Statute
The following table details some of the main insurance fraud laws in Maryland.
Code Sections | Maryland Code, Criminal Law, Title 6, Subtitle 1, Sections 6-106: Burning with Intent to Defraud, 8-509: Defrauding State Health Plan, and 8-514: Obtaining Benefit by Fraud Maryland Code, Insurance, Title 27, Subtitle 4, Sections 27-403: False or Misleading Claims, 27-406: False Applications and Statements, and 27-407.1: Intentional Auto Accidents |
What’s Prohibited? | Under the Maryland Criminal Code, several different aspects of insurance fraud are illegal, including:
Under the Insurance Code, several insurance consumer activities are prohibited, including:
|
Penalties | Insurance fraud can be punished criminally, administratively, and civilly in Maryland. Criminal Penalties A person who is convicted of burning with the intent to defraud can be imprisoned for up to 5 years and fined up to $5,000. You can also be convicted of a different crime (like arson) and have to serve your sentences either consecutively (back-to-back) or concurrently (at the same time). For insurance code fraudulent acts where the value of the fraud is over $300, the act is a felony; if less than $300, it’s a misdemeanor. If convicted, for each violation, the person must restore any property or the value of the property taken from a victim. Additionally, for presenting false insurance claims, the fine can be up to 3x the value of the claim or $10,000 (whichever is more), the minimum fine is $500 and imprisonment can be sentenced for up to 15 years for a felony or 18 months for a misdemeanor. For making false statements to the insurance commissioner or intentional car accidents, the penalty can be not more than 15 years for a felony or 18 months for a misdemeanor imprisonment and a $10,000 fine. Administrative Penalties For Insurance Code violations, an administrative penalty up to $25,000 for each act of insurance fraud is possible. The exact penalty will vary based on the circumstances, number of violations, degree of guilt, and prior offenses. Restitution can be ordered to pay back the insurer or self-insured employer any insurance benefits paid for the fraudulent claim. Civil Penalties An insurance company can also independently seek to recover any wrongfully paid out benefits in civil court. If administrative penalties aren’t paid, the Maryland Insurance Commissioner can bring a civil action to collect the judgment, and collect interest, court costs, and reasonable attorney’s fees. Note: Felonies and misdemeanors with prison sentences can typically be prosecuted at any time, therefore a crime you committed many years ago can come back to haunt you. |
Insurance Fraud Enforcement Agencies | The agency to contact about insurance fraud depends on the type of fraud you believe you've witnessed or experienced
|
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
Get Legal Help with Your Insurance Fraud Charges in Maryland
If you find yourself on the wrong side of insurance fraud laws you may be facing a very complicated criminal case. Defending yourself will involve careful consideration of the laws and the facts of your individual circumstances. Contact a local criminal defense attorney to learn how a legal professional can help.
Can I Solve This on My Own or Do I Need an Attorney?
- Complex criminal defense situations usually require a lawyer
- Defense attorneys can help protect your rights
- A lawyer can seek to reduce or eliminate criminal penalties
Get tailored advice and ask your legal questions. Many Maryland attorneys offer free consultations.
Stay up-to-date with how the law affects your life

Learn more about FindLaw’s newsletters, including our terms of use and privacy policy.