In Maryland, if an insurance policy is contested, how long does the insurer typically have to dispute it after its issuance?

In Maryland, the typical timeframe for an insurer to contest an insurance policy after its issuance is two years. This two-year limitation is consistent with the principles of insurance law aimed at providing a reasonable period for both insurers and policyholders to resolve any disputes regarding the terms or validity of the policy.

After this period, if the insurer has not contested the policy, they generally lose the right to deny coverage based on issues that could have been raised during that time. This regulation helps ensure stability and predictability for policyholders, allowing them to rely on their coverage without indefinitely facing the risk of future disputes over the validity of their policies.

Other timeframes listed—until a claim is made, indefinitely, and five years—do not align with Maryland insurance law. Allowing an insurer to contest a policy indefinitely would create uncertainty for insured parties, undermining their confidence in the protection provided by the insurance. Likewise, limiting the period to five years goes beyond the established two-year statute, failing to reflect the legal standard. Thus, the two-year limit serves a crucial role in balancing the interests of policyholders and insurers.