Most Baltimore personal injury lawyers will tell you the practical answer is "No", they don't. The Maryland Insurance Code tells us it is unlawful for an insurer to deny a claim for "arbitrary" or "capricious" reasons.
Unfortunately, one man's caprice is may well be another man's well-reasoned approached.
Claims are denied- frequently. Unfortunately, we're given little guidance on what "arbitrary" or "capricious" reasons look like -as there are only a few  decisions discussing this provision. The reality is, some insurance companies like GEICO will send you a form letter stating they don't understand how you can be hurt because there was no property damage. Other insurance companies like State Farm or Allstate will send out form letters stating they believe their insured's version of events, not yours. Often, and this is particularly true in district court where discovery is limited, the real basis on which the claim is contested may not come out until trial. I've tried hundreds of cases over the years. I extend a case evaluation and strategy planning meeting at no cost to any injury victim. Contact me today to arrange yours. 410 591 2835.