# Insurance (GIN)

## Title 12. Policy Forms and Provisions

### Subtitle 3. Property and Motor Vehicle Liability Insurance

#### Section 12-301

(a) In this section, "insurable interest" means an actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance against loss, destruction, or pecuniary damage or impairment to the property.

(b) A contract of property insurance or a contract of insurance of an interest in or arising from property is enforceable only for the benefit of a person with an insurable interest in the property at the time of the loss.

(c) An insurable interest in property is measured by the extent of possible harm to the insured from loss, injury, or impairment of the property.

(d)

  (1) This subsection applies only to an automobile insurance policy that is procured by an independent insurance producer.

  (2) Upon renewal of an existing automobile insurance policy, if the insured or a person holding an insurable interest in the subject of the policy requests proof of insurance, an authorized insurer shall provide:

    (i) a copy of the automobile insurance policy declarations; or

    (ii) written proof of the automobile insurance that consists of:

      (1) the name and address of the insured and insurer;

      (2) a description of the vehicle, including the vehicle identification number, that is the subject of the insurance policy;

      (3) a description and the amount, if applicable, of the insurance coverage including applicable deductibles;

      (4) the inception and expiration dates of coverage;

      (5) the name and address of the person with an insurable interest; and

      (6) the premium for the applicable coverage.

(e) An insurer may require written authorization from the insured before providing proof of insurance under this section to a person other than a financial institution.

#### Section 12-302

(a) A guardian of a minor may insure for the minor property that the minor owns.

(b) A property insurance contract issued to a guardian under subsection (a) of this section has the same effect as if the minor were an adult and had made the property insurance contract.

#### Section 12-303

A change of interest on the death of the insured does not void property insurance and the property insurance passes to the person taking the interest in the property.

#### Section 12-304

(a) If an insurer issues and delivers a policy to a lender on property of a borrower that has been pledged, mortgaged, or is subject to a conditional contract of sale, the insurer must issue a certificate to the borrower or owner of the property in accordance with subsection (b) of this section.

(b) The certificate issued under this section shall set forth:

  (1) the coverages provided in the policy;

  (2) the amount of premium charged for the policy;

  (3) the date the policy takes effect; and

  (4) the date the policy expires.

#### Section 12-305

(a) A claim for damage to property resulting from a motor vehicle accident may not be denied or payment of the claim delayed because the claimant, or another person, has a claim pending for bodily injury that may have arisen from the same or another accident.

(b) The amount payable for a claim for damage to property is due and owing immediately and shall be paid promptly by an insurer or by a self-insurer that is approved under Sec. 17-103(a) of the Transportation Article if:

  (1) the insurer or self-insurer has provided the coverage for the liable party; and

  (2) there is no significant dispute about:

    (i) the liability for the payment of the full property damages; or

    (ii) the monetary amount of those damages, including:

      (1) if claimed, an amount for the loss of the use of the motor vehicle; and

      (2) the cost of obtaining an estimate of repairs.

#### Section 12-306

A settlement made by an insurer or a self-insurer approved under Sec. 17-103(a) of the Transportation Article under a motor vehicle liability insurance policy of a claim arising from an accident or other event for damage to or destruction of property owned by another person:

(1) may not be construed as an admission of liability by the insured or recognition of liability by the insurer or self-insurer with respect to another claim arising from the same accident or event; and

(2) does not preclude a claim for bodily injury or other claims outside the scope of the settlement.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)