Unfair trade practices under Maryland insurance law.
Maryland Insurance Article Title 27 prohibits unfair methods of competition and deceptive acts in the insurance business.
Evaluate each option.
A. Misrepresentation
Explicitly prohibited as an unfair trade practice.
B. Fraudulent advertising
Prohibited under Maryland law.
C. Illegal inducement
Includes rebating and other improper incentives and is prohibited.
D. Reinsurance
A legitimate, lawful business practice between insurers used to manage risk.
Conclusion.
Reinsurance is not an unfair trade practice, making option D correct.
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