Maryland § 12-207

§ 12-207.

    (a)    Each statement by or on behalf of the insured or annuitant in an application for the issuance, renewal, or reinstatement of a life insurance or health insurance policy or annuity contract is considered to be a representation and not a warranty.

    (b)    A misrepresentation, omission, concealment of facts, or incorrect statement does not prevent a recovery under the policy or contract unless:

        (1)    the misrepresentation, omission, concealment, or statement is fraudulent or material to the acceptance of the risk or to the hazard that the insurer assumes; or

        (2)    if the correct facts had been made known to the insurer, as required by the application for the policy or contract or otherwise, the insurer in good faith would not have:

            (i)    issued, reinstated, or renewed the policy or contract;

            (ii)    issued the policy or contract in as large an amount or at the same premium or rate; or

            (iii)    provided coverage with respect to the hazard resulting in the loss.