Under Maryland law, how much notice must an insurance policy provide about the loss for which the benefit is payable?

The correct answer indicates that a written notice must be provided at the time of the advertisement. This requirement exists to ensure that policyholders are adequately informed about the terms and conditions of the insurance policy, including the specifics regarding coverage for losses. By requiring written notice during the advertisement phase, prospective policyholders can clearly understand what is being offered and what to expect from the policy before they make any decisions regarding their coverage.

This process is critical for consumer protection, as it allows individuals to make informed choices based on the disclosures provided at the outset. It establishes transparency in the insurance transaction, which is foundational in building trust between the insurer and the insured.

In contrast, the other choices do not adequately fulfill the disclosure requirements set by Maryland law. For instance, prior disclosure before approval is not sufficient when it comes to ensuring that potential policyholders have access to clear and immediate information about loss coverage from the very beginning of their awareness of the product. Similarly, immediate verbal notification may not provide the necessary clarity or documentation needed for consumers to review and retain information. Lastly, stating that there is no requirement for notice undermines the principles of consumer protection and informed consent that are prevalent in insurance regulation.