​DATE: ​June X, 2026

TO:     All Insurers, Nonprofit Health Service Plans, and Health Maintenance Organizations (HMOs)

RE:     Interest payable for restitution payments

The Maryland Insurance Administration (Administration) is issuing this bulletin to remind insurers and other carriers that interest is an element of restitution, and is required when restitution is paid.

Section 4-113(d)(2) of the Insurance Article[1] states:

 (d)    Instead of or in addition to suspending or revoking a certificate of authority, the Commissioner may:

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        (2)    require the holder to make restitution to any person who has suffered financial injury because of the violation of this article including requiring the holder to:

(i)    fulfill any obligation under the policies or contracts of the holder that the holder failed to fulfill in violation of this article; or

​(ii)    pay a claim or an amount due under an insurance policy or contract not paid in violation of this article. 

When restitution is paid according to this or any other provision of Maryland law that applies to a holder of a certificate of authority, interest must be included in the payment. There are statutes that provide for specific interest amounts, such as § 15-1005, but when an amount is not specified in statute, the interest shall be paid in the amount of six percent per annum, in accordance with MD Constitution Art. 3, § 57. Interest accrues from the date of a violation of the law to the date that payment is issued. 

Questions or comments may be sent to Mary Kwei, Associate Commissioner of Market Regulation and Professional Licensing, Maryland Insurance Administration, 200 Saint Paul Place, Suite 2700, Baltimore, MD 21202, or call 410-468-2113, or email to [email protected].
​

MARIE GRANT
Commissioner
                               
Signature on Original

Mary M. Kwei
Associate Commissioner
Market Regulation & Professional Licensing 

[1] All statutory references herein are to the Insurance Article, unless otherwise noted.