Maryland
How Captain's Choice v. Greater New York Marine Ins. Co. applies in Maryland: state-specific rules, key cases, and bar exam notes for Other.
In Maryland, the principles of insurance contracts are governed by mutual assent and the duty of good faith and fair dealing. Courts tend to enforce clear policy language but will also look into the parties' intentions, as well as the reasonableness of claims and disputes.
In Maryland, an insurance policy is interpreted according to the plain meanings of its terms, and ambiguity is resolved in favor of the insured. Insurers must act in good faith when handling claims, as established under the Maryland Insurance Administration's regulations.
Insurers are required to provide clear evidence of policy exclusions to deny claims.
The court emphasized the importance of the insured's reasonable expectations in interpreting insurance contracts.
Established that an insurer could be liable for bad faith if it unjustifiably refuses to pay a claim.
Maryland law aligns closely with federal standards concerning insurance contracts but emphasizes the duty of good faith more prominently. Federal courts also apply similar principles but often defer to specific contract interpretations based on federal jurisprudence.
Understanding the principles from Captain's Choice is vital for the Maryland bar exam, especially concerning insurance contracts and bad faith claims, which are frequently tested.