July 01, 2025
On May 6, 2025, Gov. Moore signed HB 1069, banning discretionary clauses in health and life insurance policies issued, delivered, or renewed in the state on or after January 1, 2026. Discretionary clauses give an insurer discretionary authority to determine eligibility for benefits and interpret other policy terms. When a policy contains a discretionary clause, courts give greater deference to insurers in claim disputes. Note that Maryland previously banned discretionary clauses in disability insurance policies.