Consequences When an Insurer Defies a Maryland Workers' Compensation Order

Immediate Legal Ramifications

When an insurer ignores a Maryland workers' compensation order, the court can deem the insurer in contempt, impose fines, and issue a writ of execution to seize assets or force payment.

Enforcement Mechanisms

The employer or injured worker may petition the Circuit Court for a mandatory injunction, compelling the insurer to honor the order. The court may also appoint a receiver to manage the insurer's obligations.

Impact on the Injured Worker

The employee retains the right to receive medical treatment and wage benefits despite the insurer's non‑compliance; any delays can be remedied through a claim for damages caused by the insurer's breach.

Potential Penalties for the Insurer

Beyond contempt fines, the insurer may face increased premium assessments, loss of licensure, and mandatory restitution to cover all outstanding benefits.

Steps for Employers and Claimants

• File a motion for contempt with supporting evidence of non‑compliance.
• Request a court‑ordered payment schedule or bond.
• Consider filing a complaint with the Maryland Insurance Administration.

Comparative Overview of Remedies