<section article="gin" article_name="Insurance" number="19-101" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>In addition to any requirement of this article and to the extent not inconsistent with this article, a workers’ compensation insurance policy is subject to Titles 9 and 10 of the Labor and Employment Article.</text> </level> <level label="b"> <text>In addition to any requirement of this article and to the extent not inconsistent with this article, a motor vehicle liability insurance policy is subject to the Maryland Vehicle Law.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-102" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>A liability insurance policy issued in the State may not require the insured to pay for liability or loss under the policy.</text> </level> <level label="b"> <text>Each liability insurance policy issued in the State shall provide that:</text> <level label="1"> <text>the bankruptcy or insolvency of the insured does not release the insurer from liability; and</text> </level> <level label="2"> <text>if an injured person or another person claiming by, through, or under the injured person is unable, after execution on a final judgment entered in an action against an insured, to recover the full amount of the final judgment, the person may bring an action against the insured’s insurer in accordance with the terms of the policy for the lesser of the amount of the judgment recovered in the action against the insured or the amount of the policy.</text> </level> </level> <level label="c"> <text>Notwithstanding anything to the contrary in the policy, each liability insurance policy issued in the State shall be construed to contain the provisions required by subsection (b) of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-103" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>Each policy issued to cover the liability of a charitable institution for negligence or any other tort shall provide that, for a claim covered by the policy, the insurer may not assert the defense that the insured is immune from liability because it is a charitable institution.</text> </section> <section article="gin" article_name="Insurance" number="19-104" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>Each policy that insures a health care provider against damages due to medical injury arising from providing or failing to provide health care shall contain provisions that:</text> <level label="1"> <text>are consistent with the requirements of Title 3, Subtitle 2A of the Courts Article; and</text> </level> <level label="2"> <text>authorize the insurer, without restriction, to negotiate and effect a compromise of claims unless the settlement amount exceeds the limits of the insurer’s liability.</text> </level> </level> <level label="b"> <level label="1"> <text>An insurer may make payments to or on behalf of claimants for reasonable hospital and medical costs, loss of wages, and expenses for rehabilitation services and treatment, within the limits of the insurer’s liability, before a final disposition of the claim.</text> </level> <level label="2"> <text>A payment made under this subsection:</text> <level label="i"> <text>is not an admission of liability to or of damages sustained by a claimant; and</text> </level> <level label="ii"> <text>does not prejudice the insurer or any other party with respect to any right, claim, or defense.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A policy issued or delivered under subsection (a) of this section may include coverage for the defense of a health care provider in a disciplinary hearing arising out of the practice of the health care provider profession if the cost of the included coverage is:</text> <level label="i"> <text>itemized in the billing statement, invoice, or declarations page for the policy; and</text> </level> <level label="ii"> <text>reported to the Commissioner in a form and manner required by the Commissioner.</text> </level> </level> <level label="2"> <text>A policy providing coverage for the defense of a health care provider in a disciplinary hearing arising out of the practice of the health care provider’s profession may be offered and priced separately from a policy issued or delivered under subsection (a) of this section.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-104.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>On request, an insurer that issues or delivers medical professional liability insurance policies in the State shall provide the Maryland Department of Health with information regarding the insurer’s policy related to coverage of obstetric services, including coverage for a vaginal birth after cesarean.</text> </section> <section article="gin" article_name="Insurance" number="19-105" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>An insurer that provides a general liability insurance policy to a fire department, fire company, rescue department, or rescue company shall offer to provide coverage for:</text> <level label="1"> <text>a volunteer firefighter or volunteer ambulance rescue squad member who, in response to an emergency, provides assistance to the fire department, fire company, rescue department, or rescue company; and</text> </level> <level label="2"> <text>any other individual who, in response to an emergency, provides assistance at the request and under the direction of the fire department, fire company, rescue department, or rescue company.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-106" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>An insurer that issues or delivers a policy or contract of motor vehicle liability insurance in the State shall offer to provide to a policyholder, who is registered as a family child care provider under Title 9.5, Subtitle 3 of the Education Article, coverage in at least the amount required under § 17–103 of the Transportation Article for liability that results from bodily injury:</text> <level label="1"> <text>to a family child care child while the child is a passenger in an automobile; and</text> </level> <level label="2"> <text>that arises out of an insured’s activities as a family child care provider.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-107" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>An insurer may not refuse to issue or renew a contract of motor vehicle insurance, property insurance, or casualty insurance solely because the subject of the risk or the applicant’s or insured’s address is located in a certain geographic area of the State unless:</text> <level label="1"> <text>at least 60 days before the refusal, the insurer has filed with the Commissioner a written statement designating the geographic area; and</text> </level> <level label="2"> <text>the designation has an objective basis and is not arbitrary or unreasonable.</text> </level> </level> <level label="b"> <text>A statement filed with the Commissioner under this section is a public record.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-108" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>An insurer may not issue a vehicle liability insurance policy on an assessable basis.</text> </section> <section article="gin" article_name="Insurance" number="19-109" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>On or after January 1, 1972, an authorized insurer may not issue or deliver a policy or contract of bodily injury liability insurance on a motor vehicle that is principally garaged or principally used in the State when the policy or contract is issued or delivered if:</text> <level label="1"> <text>the policy or contract contains a representation that the authorized insurer will pay all reasonable medical expenses incurred for bodily injury caused by an accident to the insured or another individual covered by the policy or contract; and</text> </level> <level label="2"> <text>the authorized insurer retains the right of subrogation to recover from a third party any amount paid under the policy or contract on behalf of the injured individual.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-110" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <text>An insurer may disclaim coverage on a liability insurance policy on the ground that the insured or a person claiming the benefits of the policy through the insured has breached the policy by failing to cooperate with the insurer or by not giving the insurer required notice only if the insurer establishes by a preponderance of the evidence that the lack of cooperation or notice has resulted in actual prejudice to the insurer.</text> </section> <section article="gin" article_name="Insurance" number="19-111" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section only applies if an insurer, through its insurance producer, adjuster, or representative, has begun investigating, estimating, or adjusting a property loss resulting from fire or a hazard under an extended coverage endorsement.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an insured that has failed to give an insurer a sworn statement in proof of loss or a written notice as required by an insurance contract is not prevented from recovering under the insurance contract.</text> </level> <level label="2"> <text>An insured may be prevented from recovering under an insurance contract if the insured fails to provide the sworn statement in proof of loss or written notice required by the insurance contract within 15 days after receiving the insurer’s written request for the statement or notice.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-112" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>The Commissioner may request by bulletin from a property and casualty insurer data that relates to policies written by the insurer.</text> </level> <level label="b"> <text>A request by bulletin under this section shall specify:</text> <level label="1"> <text>the line of insurance for which the data is being requested; and</text> </level> <level label="2"> <text>the period of time for which the data is requested.</text> </level> </level> <level label="c"> <text>Data requested by bulletin under this section shall be filed with the Commissioner in a form required by the Commissioner.</text> </level> <level label="d"> <level label="1"> <text>A request by bulletin expires 2 years after the date of the request by the Commissioner.</text> </level> <level label="2"> <text>If the Commissioner needs additional data after the end of that 2-year period, the Commissioner shall issue another bulletin.</text> </level> </level> <level label="e"> <text>At least 15 days prior to granting an application under § 4–203 of the General Provisions Article to inspect company–specific data that was requested by bulletin under this section, the Commissioner shall notify the insurer that supplied the data:</text> <level label="1"> <text>that the Commissioner has received an application to inspect data filed by the insurer;</text> </level> <level label="2"> <text>which data the Commissioner intends to disclose in granting the application; and</text> </level> <level label="3"> <text>that, within 7 days of receipt of the notice, the insurer has the opportunity to provide any reason why the data is confidential commercial data or is otherwise protected from disclosure under the Public Information Act.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-113" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>A parent of a minor or person in loco parentis of the minor may settle a claim under a liability insurance policy brought by the parent or person in loco parentis for the benefit of the minor.</text> </level> <level label="b"> <text>The payment of a settlement of a claim made under this section for the benefit of a minor shall comply with Title 13, Subtitle 4 of the Estates and Trusts Article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-114" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>Each insurer that issues or delivers a medical professional liability insurance policy in the State with an annual premium of $5,000 or more shall offer at a minimum, in addition to the basic policy, additional policies with deductibles in the following amounts:</text> <level label="1"> <text>$25,000;</text> </level> <level label="2"> <text>$50,000; and</text> </level> <level label="3"> <text>$100,000.</text> </level> </level> <level label="b"> <text>In a policy with a deductible described in subsection (a) of this section, the insurer shall apply the deductible only to the liability of the insured under the policy.</text> </level> <level label="c"> <level label="1"> <text>An insurer that issues or delivers a medical professional liability insurance policy with a deductible described in subsection (a) of this section may cancel the policy for nonpayment of the deductible when the deductible is due and payable under the policy.</text> </level> <level label="2"> <text>A medical professional liability insurer that cancels a policy under paragraph (1) of this subsection is subject to the notice provisions under § 27–603 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-115" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Health care provider” means an individual who is licensed, certified, or otherwise authorized under the Health Occupations Article to provide health care services.</text> </level> <level label="3"> <text>“HMO provider panel” means a provider panel for one or more health maintenance organizations.</text> </level> <level label="4"> <text>“Insurer provider panel” means a provider panel for one or more insurers engaged in the business of casualty insurance or property insurance.</text> </level> <level label="5"> <text>“Non–HMO provider panel” means a provider panel for one or more nonprofit health service plans or insurers.</text> </level> <level label="6"> <text>“Provider contract” means a contract between a health care provider and an entity that contracts with a health care provider to serve on an insurer provider panel, an HMO provider panel, or a non–HMO provider panel.</text> </level> </level> <level label="b"> <level label="1"> <text>An insurer may not use an insurer provider panel if the provider contract for the insurer provider panel requires a provider to participate on the insurer provider panel as a condition of participating on an HMO provider panel or a non–HMO provider panel.</text> </level> <level label="2"> <text>An entity arranging an insurer provider panel shall provide a health care provider a schedule of applicable fees for up to the 50 most common services billed by a health care provider in the specialty of the health care provider:</text> <level label="i"> <text>in writing at the time of execution of a provider contract;</text> </level> <level label="ii"> <text>in writing or electronically 30 days before a change in the schedule of applicable fees; and</text> </level> <level label="iii"> <text>in writing or electronically on request of the health care provider.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-116" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Certificate holder” means any person, other than a policyholder, that requests, obtains, or possesses a certificate of insurance.</text> </level> <level label="3"> <level label="i"> <text>“Certificate of insurance” or “certificate” means any document or instrument, however titled or described, that is prepared or issued by an insurer or insurance producer as evidence of property insurance or casualty insurance coverage.</text> </level> <level label="ii"> <text>“Certificate of insurance” or “certificate” does not include a policy of insurance or an insurance binder.</text> </level> </level> <level label="4"> <text>“Insurer” includes a person that is self–insured.</text> </level> <level label="5"> <text>“Person” includes a unit of State or local government.</text> </level> <level label="6"> <text>“Policyholder” means the owner of a policy of property insurance or casualty insurance.</text> </level> </level> <level label="b"> <level label="1"> <text>This section applies to all certificate holders, policyholders, insurers, insurance producers, and certificates of insurance prepared or issued as evidence of insurance coverage on property, operations, or risks located in the State, regardless of where the certificate holder, policyholder, insurer, or insurance producer is located.</text> </level> <level label="2"> <text>This section may not be construed to apply to a statement, summary, or evidence of property insurance, including a certificate, required by a lender that holds a loan secured by:</text> <level label="i"> <text>a mortgage;</text> </level> <level label="ii"> <text>a lien;</text> </level> <level label="iii"> <text>a deed of trust; or</text> </level> <level label="iv"> <text>any other security interest in real or personal property as security for the loan.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraphs (2) and (3) of this subsection, a person may not prepare or issue or require the preparation or issuance of a certificate of insurance unless the certificate of insurance form has been filed with and approved by the Commissioner.</text> </level> <level label="2"> <text>Any standard certificate of insurance form adopted by the Association for Cooperative Operations Research and Development (ACORD) or the Insurance Services Office (ISO) that otherwise complies with the requirements of this section is deemed approved by the Commissioner.</text> </level> <level label="3"> <text>The Commissioner may designate a certificate of insurance form required by a federal agency as deemed approved.</text> </level> </level> <level label="d"> <text>The Commissioner shall disapprove a certificate of insurance form filed with the Commissioner under this section, or withdraw approval of a certificate of insurance form, if the form:</text> <level label="1"> <text>is unjust, unfair, misleading, or deceptive or violates public policy;</text> </level> <level label="2"> <text>fails to comply with the requirements of this section; or</text> </level> <level label="3"> <text>violates any law, including any regulation adopted by the Commissioner.</text> </level> </level> <level label="e"> <text>A person may not require an insurer or insurance producer to prepare or issue, or a policyholder to provide, a certificate of insurance that contains false or misleading information relating to the policy of insurance referenced in the certificate.</text> </level> <level label="f"> <text>A person may not alter or modify an approved certificate of insurance.</text> </level> <level label="g"> <text>A person may not prepare or issue a certificate of insurance that the person knows contains false or misleading information or that purports to amend, alter, or extend the coverage provided by the policy of insurance referenced in the certificate.</text> </level> <level label="h"> <text>A person may not prepare, issue, or require, either in addition to or in lieu of a certificate of insurance, an opinion letter or other document that is inconsistent with this section.</text> </level> <level label="i"> <level label="1"> <text>A certificate of insurance is not a policy of insurance and does not amend, alter, or extend the coverage provided by the policy of insurance referenced in the certificate.</text> </level> <level label="2"> <text>A certificate of insurance does not confer on a certificate holder new or additional coverage beyond the coverage provided in the policy of insurance referenced in the certificate.</text> </level> </level> <level label="j"> <text>The terms and conditions of a notice of cancellation, nonrenewal, material change, or other similar matters relating to a policy of insurance referenced in a certificate of insurance:</text> <level label="1"> <text>shall be governed by the policy of insurance; and</text> </level> <level label="2"> <text>may not be altered by a certificate of insurance.</text> </level> </level> <level label="k"> <text>A certificate of insurance or any other document prepared, issued, or required in violation of this section is void and unenforceable.</text> </level> <level label="l"> <text>The Commissioner may examine and investigate the activities of any person that the Commissioner reasonably believes has been or is engaged in an act or practice prohibited by this section.</text> </level> <level label="m"> <text>The Commissioner shall adopt regulations to carry out this section, including regulations that establish an approval process for certificate of insurance forms.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-117" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section, “adverse action” includes:</text> <level label="i"> <text>refusing to renew or execute a contract or agreement with a health care practitioner;</text> </level> <level label="ii"> <text>making a report or commenting to an appropriate private or governmental entity regarding practices of legally protected health care as defined in § 2–312 of the State Personnel and Pensions Article; and</text> </level> <level label="iii"> <text>increasing a premium for or making another type of unfavorable change regarding terms of coverage under a medical professional liability insurance contract agreement with a health care practitioner.</text> </level> </level> <level label="2"> <text>“Adverse action” does not include making a rate filing in accordance with § 11–206 of this article.</text> </level> </level> <level label="b"> <text>An insurer that issues to, delivers to, or renews medical professional liability insurance for a health care practitioner licensed, certified, or otherwise authorized by law to practice in the State may not take adverse action against a health care practitioner in whole or in part because the health care practitioner provides legally protected health care or makes a referral for legally protected health care.</text> </level> <level label="c"> <text>This section does not prohibit the medical professional liability insurer from taking adverse action against a health care practitioner for conduct that would otherwise constitute professional misconduct.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-201" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Additional optional coverage” means a coverage or service that covers the structures, contents, property, or activities on property that is available for purchase in connection with a standard homeowner’s insurance policy.</text> </level> <level label="c"> <text>“Insurer” means an insurer that issues or delivers a policy of homeowner’s insurance in the State.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-202" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>An insurer that issues, sells, or delivers a homeowner’s insurance policy shall at time of application and renewal offer in writing to provide coverage for loss that:</text> <level label="1"> <text>is caused by or results from water that backs up through sewers or drains; and</text> </level> <level label="2"> <text>is not caused by the negligence of the insured.</text> </level> </level> <level label="b"> <text>If an application or renewal is made by telephone, the insurer is deemed to be in compliance with subsection (a) of this section if, within 7 calendar days after the date of application or renewal, the insurer sends the offer to the applicant or insured by a first–class mail tracking method.</text> </level> <level label="c"> <text>If an application or renewal is made using the Internet, the insurer is deemed to be in compliance with subsection (a) of this section if the insurer provides the offer to the applicant or insured prior to submission of the application or renewal.</text> </level> <level label="d"> <text>An offer required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> <level label="e"> <text>An insurer may comply with the renewal notice requirements of this section by sending the notice authorized by § 19–216 of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-203" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <text>An insurer that issues or delivers a policy or contract of homeowner’s liability insurance in the State shall offer to provide to a policyholder, who is registered as a family child care provider under Title 9.5, Subtitle 3 of the Education Article, coverage of at least $300,000 for liability that results from bodily injury, property damage, or personal injury arising out of an insured’s activities as a family child care provider.</text> </section> <section article="gin" article_name="Insurance" number="19-204" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <text>A policy or contract of homeowner’s liability insurance that contains a representation that the insurer will pay all reasonable medical expenses incurred for bodily injury caused by an accident to an individual covered by the policy or contract may not be issued unless the policy or contract also provides that the insurer will pay all medical expenses incurred within 3 years after the date of the accident.</text> </section> <section article="gin" article_name="Insurance" number="19-205" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>An insurer shall provide a policyholder with an annual statement that summarizes the coverages and exclusions under the policy issued by the insurer.</text> </level> <level label="2"> <text>The insurer’s statement shall be clear and specific.</text> </level> <level label="3"> <text>The insurer’s statement shall state whether the coverages under the policy provide for replacement cost, actual cash value, or other method of loss payment for covered structures and contents.</text> </level> <level label="4"> <text>The insurer’s statement shall include a disclosure that states:</text> <level label="i"> <text>the policyholder should read the policy for complete information on coverages and exclusions;</text> </level> <level label="ii"> <text>the policyholder should refer to the declarations page for a listing of coverages purchased;</text> </level> <level label="iii"> <text>the policyholder should communicate with the insurance producer or the insurer for any additional information regarding the scope of coverages in the policy;</text> </level> <level label="iv"> <text>the statement does not include additional optional coverage purchased by the policyholder, if any;</text> </level> <level label="v"> <text>the statement is not part of the policy or contract of insurance and does not create a private right of action;</text> </level> <level label="vi"> <text>all rights, duties, and obligations are controlled by the policy and contract of insurance; and</text> </level> <level label="vii"> <text>the standard homeowner’s insurance policy does not cover losses from flood.</text> </level> </level> </level> <level label="b"> <text>The statement under subsection (a) of this section:</text> <level label="1"> <text>is not part of the policy or contract of insurance; and</text> </level> <level label="2"> <text>does not create a private right of action.</text> </level> </level> <level label="c"> <text>The statement required by subsection (a) of this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> <level label="d"> <text>The Commissioner may adopt regulations to implement the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-206" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>An insurer that sells or negotiates homeowner’s insurance in the State shall provide an applicant, at the time a policy of homeowner’s insurance is initially purchased, with a written notice that states that a standard homeowner’s insurance policy does not cover losses from flood.</text> </level> <level label="2"> <text>If an application is made by telephone, the insurer is deemed to be in compliance with this section if, within 7 calendar days after the date of application, the insurer sends the notice to the applicant or insured by a first–class mail tracking method.</text> </level> <level label="3"> <text>If an application is made using the Internet, the insurer is deemed to be in compliance with this section if the insurer provides the notice to the applicant prior to the submission of the application.</text> </level> </level> <level label="b"> <text>The notice shall:</text> <level label="1"> <text>state that flood insurance may be available through the National Flood Insurance Program or other sources;</text> </level> <level label="2"> <text>provide the applicant with the contact information for the National Flood Insurance Program;</text> </level> <level label="3"> <text>advise the applicant to confirm the need for flood insurance with the National Flood Insurance Program or the applicant’s mortgage lender;</text> </level> <level label="4"> <text>advise the applicant to contact the National Flood Insurance Program, the applicant’s insurer, or the applicant’s insurance producer for information about flood insurance;</text> </level> <level label="5"> <text>advise the applicant that flood insurance may be available for covered structures and their contents;</text> </level> <level label="6"> <text>advise the applicant that a claim under a flood insurance policy may be adjusted and paid on a different basis than a claim under a homeowner’s insurance policy; and</text> </level> <level label="7"> <text>advise the applicant that a separate application must be completed to purchase flood insurance.</text> </level> </level> <level label="c"> <text>A notice required to be sent by a first–class mail tracking method under this section may be sent with the statement required under § 19–207 of this subtitle.</text> </level> <level label="d"> <text>A notice provided under this section does not create a private right of action.</text> </level> <level label="e"> <text>A notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-206.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>This section applies to an insurer that offers a homeowner’s insurance or renter’s insurance policy in the State that does not provide coverage for losses caused by specific breeds or specific mixed breeds of dogs.</text> </level> <level label="b"> <text>At the time of application for or issuance of a policy of homeowner’s insurance or renter’s insurance, and at each renewal of a policy of homeowner’s insurance or renter’s insurance, an insurer subject to this section shall provide to an applicant or an insured a written notice that:</text> <level label="1"> <text>states that the policy does not provide coverage for losses caused by specific breeds or specific mixed breeds of dogs; and</text> </level> <level label="2"> <text>identifies the specific breeds or specific mixed breeds of dogs for which the policy does not provide coverage.</text> </level> </level> <level label="c"> <text>An insurer subject to this section may provide the notice required under subsection (b) of this section in the annual statement required under § 19–205 of this subtitle.</text> </level> <level label="d"> <text>The notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-207" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>An insurer that sells or negotiates homeowner’s insurance in the State shall provide an applicant, at the time of application for homeowner’s insurance, with a written statement that lists all additional optional coverage available from the insurer to the applicant.</text> </level> <level label="2"> <text>If an application is made by telephone, the insurer is deemed to be in compliance with this section if, within 7 calendar days after the date of application, the insurer sends the statement to the applicant or insured by a first–class mail tracking method.</text> </level> <level label="3"> <text>If an application is made using the Internet, the insurer is deemed to be in compliance with this section if the insurer provides the statement to the applicant prior to submission of the application.</text> </level> </level> <level label="b"> <text>The statement shall:</text> <level label="1"> <text>be on a separate form;</text> </level> <level label="2"> <text>be titled, in at least 12 point type, “Additional Optional Coverage Not Included in the Standard Homeowner’s Insurance Policy”;</text> </level> <level label="3"> <text>contain the following disclosure in at least 10 point type:</text> <text>“Your standard homeowner’s insurance policy does not cover all risks. You may need to obtain additional insurance to cover loss or damage to your home, property, and the contents of your home or to cover risks related to business or personal activities on your property.</text> <text>This statement provides a list of the types of additional insurance coverage that are available. Contact your insurance company, insurance producer, or insurance agent to discuss these additional coverages.”; and</text> </level> <level label="4"> <text>contain a list of additional optional coverage.</text> </level> </level> <level label="c"> <text>A statement required to be sent by a first–class mail tracking method under this section may be sent with the notice required under § 19–206 of this subtitle.</text> </level> <level label="d"> <text>A statement provided under this section does not create a private right of action.</text> </level> <level label="e"> <text>A statement required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-208" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>A policy of homeowner’s, fire, farmowner’s, or dwelling insurance that provides coverage for additional living expenses incurred by an insured as a result of a covered loss may not be issued, sold, or delivered in the State if the policy contains language that limits coverage for additional living expenses to a period of time that is less than 12 months.</text> </level> <level label="b"> <text>A clause in a policy of homeowner’s, fire, farmowner’s, or dwelling insurance that purports to limit coverage for additional living expenses incurred by an insured as a result of a covered loss to a period of time that is less than 12 months is void and unenforceable.</text> </level> <level label="c"> <text>Notwithstanding subsection (a) of this section, the Commissioner may require an insurer to provide coverage for additional living expenses under a policy of homeowner’s, fire, farmowner’s, or dwelling insurance for up to 24 months if the Commissioner finds that covered property remains uninhabitable due to delays in repair or replacement caused:</text> <level label="1"> <text>by the insurer; or</text> </level> <level label="2"> <text>by factors beyond the control of the insured.</text> </level> </level> <level label="d"> <text>Nothing in this section shall be construed to:</text> <level label="1"> <text>prohibit or prevent the enforcement of a monetary limit of liability for additional living expenses under a policy of homeowner’s, fire, farmowner’s, or dwelling insurance;</text> </level> <level label="2"> <text>prohibit an insurer from denying coverage for additional living expenses if the carrier determines that at the time the additional living expenses were incurred the covered property was not unfit to live in; or</text> </level> <level label="3"> <text>prohibit an insurer from denying coverage for additional living expenses on the grounds that the covered property was unfit to live in at the time that the additional living expenses were incurred because of delays in repair or replacement caused by the insured.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-209" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>Subject to subsections (b), (c), and (d) of this section, an insurer may issue a policy of homeowner’s insurance that includes a deductible that is equal to a percentage of the “Coverage A – Dwelling Limit” of the policy.</text> </level> <level label="2"> <text>The insurer may:</text> <level label="i"> <text>require the deductible described in paragraph (1) of this subsection in a policy of the homeowner’s insurance; or</text> </level> <level label="ii"> <text>offer the deductible described in paragraph (1) of this subsection as an option to an applicant or insured.</text> </level> </level> </level> <level label="b"> <text>An insurer that has adopted an underwriting standard that requires a mandatory hurricane deductible equal to a percentage of the “Coverage A – Dwelling Limit” of the policy shall apply the deductible:</text> <level label="1"> <text>only beginning at the time the National Hurricane Center of the National Weather Service issues a hurricane warning for any part of the State and ending 24 hours following the termination of the last hurricane warning issued for any part of the State; and</text> </level> <level label="2"> <text>regardless of where the insured’s home is located in the State.</text> </level> </level> <level label="c"> <level label="1"> <text>An insurer that issues a policy of homeowner’s insurance may not adopt an underwriting standard that requires a deductible that exceeds 5% of the “Coverage A – Dwelling Limit” of the policy in the case of a hurricane unless the insurer has filed the underwriting standard with the Commissioner.</text> </level> <level label="2"> <text>The filing required by paragraph (1) of this subsection shall:</text> <level label="i"> <text>be made at least 60 days before the insurer proposes to implement the underwriting standard in the State; and</text> </level> <level label="ii"> <text>include:</text> <level label="1"> <text>a copy of the underwriting standard the insurer intends to implement; and</text> </level> <level label="2"> <text>the date on which the insurer intends to implement the underwriting standard.</text> </level> </level> </level> <level label="3"> <text>An underwriting standard subject to this subsection shall comply with all applicable laws.</text> </level> </level> <level label="d"> <level label="1"> <text>An insurer that issues a policy of homeowner’s insurance that includes a deductible that is equal to a percentage of the “Coverage A – Dwelling Limit” of the policy or has adopted an underwriting standard that requires a mandatory hurricane deductible equal to a percentage of the “Coverage A – Dwelling Limit” of the policy shall provide a policyholder with an annual statement explaining the manner in which the deductible is applied in accordance with § 19–209.1 of this subtitle.</text> </level> <level label="2"> <text>The insurer shall send a copy of the form used to provide the statement required under paragraph (1) of this subsection to the Commissioner prior to its use.</text> </level> </level> <level label="e"> <text>The Commissioner may adopt regulations to implement the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-209.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>An insurer that issues a policy of homeowner’s insurance that includes a deductible that is equal to a percentage of the “Coverage A – Dwelling Limit” of the policy, or has adopted an underwriting standard that requires a mandatory hurricane deductible equal to a percentage of the “Coverage A – Dwelling Limit” of the policy, shall provide an insured with a statement about the deductible at the time the policy of homeowner’s insurance is first issued and at each renewal.</text> </level> <level label="b"> <level label="1"> <text>The statement required under subsection (a) of this section shall:</text> <level label="i"> <text>be titled, in at least 12 point type, “Percentage Deductible Notice”;</text> </level> <level label="ii"> <text>state the actual percentage of the percentage deductible;</text> </level> <level label="iii"> <text>state the circumstances under which the deductible applies;</text> </level> <level label="iv"> <text>include an example of how the deductible applies to a loss; and</text> </level> <level label="v"> <text>include the following statement, or a substantially similar statement, in at least 10 point type:</text> <text>“Your homeowner’s insurance policy contains a percentage deductible, which means that your deductible for a covered loss will be determined by multiplying the dollar amount of your Coverage A – Dwelling Limit of Liability by this percentage under the following circumstances: (insert explanation of circumstances under which a percentage deductible would be applied)”.</text> </level> </level> <level label="2"> <text>The example required under paragraph (1)(iv) of this subsection may be provided in the following manner:</text> <text>“If, at the time of a covered loss, a homeowner’s insurance policy’s Coverage A – Dwelling Limit of Liability is $300,000 and the policy includes a 2% deductible, the policyholder will be responsible for paying a deductible of $6,000 on a claim for a covered loss ($300,000 x 2%). This means that, for example:</text> <text>If the covered loss to the dwelling is $25,000 and the covered loss to personal property is $10,000 for a total covered loss of $35,000, the policyholder is responsible for paying a $6,000 deductible and the insurer is responsible for the balance of the covered loss, or $29,000. </text> <text>If the covered loss to the dwelling is $5,000, the policyholder is responsible for paying the entire covered loss because the total amount of the covered loss is less than the percentage deductible, which is $6,000.”.</text> </level> </level> <level label="c"> <level label="1"> <text>An insurer may satisfy the requirements of subsection (b) of this section if, on the declarations page of the policy of homeowner’s insurance or in a separate statement, the insurer states:</text> <level label="i"> <text>the actual percentage of the percentage deductible;</text> </level> <level label="ii"> <text>the dollar amount of the percentage deductible as it relates to the policy of homeowner’s insurance; and</text> </level> <level label="iii"> <text>the circumstances under which the deductible applies.</text> </level> </level> <level label="2"> <text>The statement shall be titled, in at least 12 point type, “Percentage Deductible Notice”.</text> </level> </level> <level label="d"> <text>The statement required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-210" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>An insurer shall offer at least one actuarially justified premium discount on a policy of homeowner’s insurance to a policyholder who submits proof of improvements made to the insured premises as a means of mitigating loss from a hurricane or other storm.</text> </level> <level label="b"> <text>Means of mitigating loss include:</text> <level label="1"> <text>the installation of one or more of the following:</text> <level label="i"> <text>hurricane shutters;</text> </level> <level label="ii"> <text>secondary water barrier;</text> </level> <level label="iii"> <text>reinforced roof coverings;</text> </level> <level label="iv"> <text>braced gable ends;</text> </level> <level label="v"> <text>reinforced roof to wall connections;</text> </level> <level label="vi"> <text>tie downs; and</text> </level> <level label="vii"> <text>reinforced opening protections;</text> </level> </level> <level label="2"> <text>repair or replacement of:</text> <level label="i"> <text>exterior doors, including garage doors;</text> </level> <level label="ii"> <text>hurricane resistant trusses, studs, and other structural components; and</text> </level> <level label="iii"> <text>repair or replacement of manufactured home piers, anchors, and tie down straps; and</text> </level> </level> <level label="3"> <text>any mitigation effort that materially mitigates loss from a hurricane or other storm otherwise covered under the policy.</text> </level> </level> <level label="c"> <text>Improvements made to the insured premises under this section shall be inspected by a contractor licensed by the Maryland Department of Labor.</text> </level> <level label="d"> <level label="1"> <text>An insurer shall be allowed to inspect the improvements that are the basis of a premium discount under this section.</text> </level> <level label="2"> <level label="i"> <text>Verification of improvements that are the basis of a premium discount under this section rests with the insurer.</text> </level> <level label="ii"> <text>An insurer may accept an inspection certificate issued by a governmental agency as verification of improvements that are the basis of a premium discount under this section.</text> </level> </level> </level> <level label="e"> <text>A premium discount offered under this section shall:</text> <level label="1"> <text>comply with the provisions of Title 11 of this article; and</text> </level> <level label="2"> <text>only be offered for improvements identified by the Commissioner as qualified mitigation actions made to the insured premises that may materially mitigate loss from a hurricane or other storm otherwise covered under the policy.</text> </level> </level> <level label="f"> <level label="1"> <text>An insurer that offers a premium discount under this section shall provide a policyholder with an annual statement regarding the availability of the discount and the method of applying for the discount.</text> </level> <level label="2"> <text>The notice required under paragraph (1) of this subsection may be sent with the statement required under § 19–205 of this subtitle.</text> </level> <level label="3"> <text>An insurer may comply with the renewal notice requirements of this subsection by sending the notice authorized by § 19–216 of this subtitle.</text> </level> </level> <level label="g"> <text>The notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> <level label="h"> <text>The Commissioner may adopt regulations to implement the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-211" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>If an insurer uses a catastrophic risk planning model or other model in setting homeowner’s insurance rates or refusing to issue or renew homeowner’s insurance because of the geographic location of the risk, the insurer shall:</text> <level label="i"> <text>file with the Commissioner a description of the specific model used in setting the rate or refusing to issue or renew homeowner’s insurance because of the geographic location of the risk; and</text> </level> <level label="ii"> <text>make arrangements for the vendor of the model to explain to the Commissioner and the People’s Insurance Counsel the data used in the model and the manner in which the output is obtained.</text> </level> </level> <level label="2"> <text>If at any time an insurer changes the catastrophic risk planning model or other model upon which it is relying, the insurer shall notify the Commissioner of the change and comply with paragraph (1) of this subsection.</text> </level> </level> <level label="b"> <level label="1"> <text>The information filed under subsection (a) of this section is proprietary and confidential commercial information under § 4–335 of the General Provisions Article.</text> </level> <level label="2"> <text>The People’s Insurance Counsel shall maintain the confidentiality of any proprietary and confidential commercial information to which the People’s Insurance Counsel obtains access under subsection (a) of this section.</text> </level> </level> <level label="c"> <text>The Commissioner may adopt regulations to implement the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-212" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Material reduction” means during a 1–year period a reduction of homeowner’s insurance policies in force for an insurer on a statewide basis by 3% or more due to cancellations or nonrenewals solely because the subject of the risk or the insured’s address is located in a certain geographic area of the State.</text> </level> <level label="ii"> <text>“Material reduction” does not include a homeowner’s insurance policy:</text> <level label="1"> <text>cancelled, nonrenewed, or otherwise terminated by an insured; or</text> </level> <level label="2"> <text>cancelled or nonrenewed by an insurer pursuant to reasons other than a material reduction plan.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>“Minimizes market disruption” means actions to be taken by an insurer that intends to engage in a plan of material reduction of its volume of policies to provide for the orderly reduction in homeowner’s insurance coverage.</text> </level> <level label="ii"> <text>“Minimizes market disruption” includes:</text> <level label="1"> <text>efforts by the insurer to maintain a service force in affected areas during the period of material reduction;</text> </level> <level label="2"> <text>efforts to inform insureds of options available for replacement of coverage with authorized insurers; and</text> </level> <level label="3"> <text>any actions serving to minimize market disruption.</text> </level> </level> </level> </level> <level label="b"> <level label="1"> <text>At least 60 days in advance of implementing a plan of material reduction, an insurer shall file with the Commissioner a plan for orderly reduction.</text> </level> <level label="2"> <text>The plan shall:</text> <level label="i"> <text>describe the insurer’s contemplated actions;</text> </level> <level label="ii"> <text>set forth the reasons for the actions;</text> </level> <level label="iii"> <text>describe the measures the insurer intends to take in order to minimize market disruption; and</text> </level> <level label="iv"> <text>provide any other information required by the Commissioner.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in this section, a filing under this section may not take effect until 60 days after it is filed with the Commissioner.</text> </level> <level label="2"> <text>During the initial 60–day waiting period, the Commissioner may extend the waiting period for an additional period, not to exceed 60 days, by written notice to the insurer that the Commissioner needs additional time for consideration of the filing.</text> </level> <level label="3"> <text>A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period.</text> </level> </level> <level label="d"> <text>If the Commissioner finds that compliance with subsection (b) of this section would result in impairment of the insurer or a significant financial loss to the insurer, the Commissioner may allow an insurer to implement its plan of material reduction within 60 days after the filing of the plan.</text> </level> <level label="e"> <text>The Commissioner shall approve the plan of material reduction if the insurer demonstrates that the material reduction is accomplished in a manner that minimizes market disruption in the areas of material reduction.</text> </level> <level label="f"> <text>In reviewing a plan of material reduction, the Commissioner shall assess the impact of the plan of material reduction in:</text> <level label="1"> <text>each county of the State; and</text> </level> <level label="2"> <text>areas within 1 mile of any saltwater shoreline or any shoreline directly adjacent to the Chesapeake Bay.</text> </level> </level> <level label="g"> <level label="1"> <text>If the Commissioner disapproves the plan of material reduction, the Commissioner shall state:</text> <level label="i"> <text>the points of objection with the plan; and</text> </level> <level label="ii"> <text>any amendments to the plan that the Commissioner may require, consistent with this section, including amendments designed to accomplish the plan of material reduction in a manner that minimizes market disruption.</text> </level> </level> <level label="2"> <text>The insurer shall file an amended plan within 15 days after the date of return of the disapproved plan.</text> </level> <level label="3"> <text>Any intended withdrawal in accordance with a plan of material reduction that is disapproved is prohibited until the original or an amended plan of material reduction is approved by the Commissioner.</text> </level> </level> <level label="h"> <text>The Commissioner may adopt regulations to implement the provisions of this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-213" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>Each policy of homeowner’s, farmowner’s, or dwelling insurance issued, sold, or delivered in the State that provides property coverage for a dwelling or personal property on a replacement cost basis shall contain a provision that allows an insured to file a claim for the difference between the actual cash value and the replacement cost for the completed repairs or replacement for not less than 2 years after the date of loss.</text> </level> <level label="b"> <text>An insurer may require an insured seeking additional payments on a replacement cost basis to notify the insurer, within 180 days after the date of loss, of the insured’s intent to repair or replace the dwelling or personal property.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-214" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>An insurer that offers homeowner’s insurance in the State shall provide a written notice to the insured at the time of application or issuance and at each renewal of the policy that states, in substantially similar language, that, in addition to the other allowable reasons for cancellation or refusal to renew under Maryland law:</text> <level label="1"> <text>the insurer may cancel or refuse to renew coverage on the basis of the number of claims made by the policyholder within the preceding 3–year period; and</text> </level> <level label="2"> <text>the insurer may cancel or refuse to renew coverage on the basis of:</text> <level label="i"> <text>three or more weather–related claims made within the preceding 3–year period;</text> </level> <level label="ii"> <text>one or more weather–related claims made within the preceding 3–year period if the insurer has provided written notice to the insured for reasonable or customary repairs or replacement specific to the insured’s premises or dwelling that:</text> <level label="1"> <text>the insured failed to make; and</text> </level> <level label="2"> <text>if made, would have prevented the loss for which a claim was made; and</text> </level> </level> <level label="iii"> <text>a change in the physical condition or contents of the premises that:</text> <level label="1"> <text>increases the hazard insured against; and</text> </level> <level label="2"> <text>if present and known to the insurer before the issuance of the policy, would have caused the insurer to refuse to issue the policy.</text> </level> </level> </level> </level> <level label="b"> <text>In order to support cancellation or refusal to renew under subsection (a)(2)(ii) of this section, the written notice:</text> <level label="1"> <text>must refer to specific conditions known to the insurer concerning the insured’s specific premises or dwelling; and</text> </level> <level label="2"> <text>may not be a general notification of repairs or replacements common to that type of premises or dwelling.</text> </level> </level> <level label="c"> <text>A notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> <level label="d"> <text>An insurer may comply with the renewal notice requirements of this section by sending the notice authorized by § 19–216 of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-215" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>An insurer that issues a policy of homeowner’s insurance in the State that contains an anti–concurrent causation (ACC) clause shall provide a policyholder each year with a notice that:</text> <level label="1"> <text>is clear and specific;</text> </level> <level label="2"> <text>describes the ACC clause;</text> </level> <level label="3"> <text>informs the insured to read the policy for complete information on the exclusions; and</text> </level> <level label="4"> <text>states that the insured should communicate with the insurance producer or the insurer for additional information regarding the scope of the exclusions.</text> </level> </level> <level label="b"> <text>The notice under subsection (a) of this section:</text> <level label="1"> <text>is not part of the policy or contract of insurance; and</text> </level> <level label="2"> <text>does not create a private right of action.</text> </level> </level> <level label="c"> <text>A notice required by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> <level label="d"> <text>The Commissioner may adopt regulations to implement this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-216" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="2" subtitle_name="Homeowner's Insurance Policies"> <level label="a"> <text>The Commissioner shall adopt by regulation a notice to be provided to insureds or policyholders at each renewal regarding areas of concerns, including:</text> <level label="1"> <text>flood;</text> </level> <level label="2"> <text>coverage for loss from water that backs up through sewers and drains;</text> </level> <level label="3"> <text>deductibles;</text> </level> <level label="4"> <text>storm loss protective device discount;</text> </level> <level label="5"> <text>claims history; and</text> </level> <level label="6"> <text>increased hazard.</text> </level> </level> <level label="b"> <text>The notice provided under subsection (a) of this section shall:</text> <level label="1"> <text>be written in clear and specific language; and</text> </level> <level label="2"> <text>contain the following language in at least 10 point type:</text> <text>“This notice is not your policy, does not give you any new or additional rights beyond those expressly stated in your policy, and does not alter your policy in any way.”.</text> </level> </level> <level label="c"> <text>The notice provided under subsection (a) of this section does not create a private right of action.</text> </level> <level label="d"> <text>An insurer may provide the renewal notices required by §§ 19–202, 19–205(a)(4)(vii), 19–210(f), and 19–214(a) of this subtitle and § 27–501(n)(2) of this article by sending the notice authorized by subsection (a) of this section.</text> </level> <level label="e"> <text>The notice authorized by this section may be delivered by electronic means if the insurer complies with the requirements of § 27–601.2 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-301" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <text>In this subtitle, “antiarson application” means an application for property insurance covering the peril of fire that:</text> <level label="1"> <text>requires an applicant to provide the basic information normally supplied to an insurer by an applicant for that type of coverage; and</text> </level> <level label="2"> <text>includes certain additional questions to be answered by the applicant.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-302" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <text>The purpose of this subtitle is to promote the public welfare by reducing fire damage to property and loss of life that is caused by the crime of arson by requiring insurers to secure antiarson applications that contain information to control the incidence of arson fraud from applicants for new policies of property insurance.</text> </level> <level label="b"> <text>This subtitle does not apply to a renewal of an existing property insurance policy or contract.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-303" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <text>The Commissioner may adopt regulations to carry out this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="19-304" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <text>If, after a public hearing, the Commissioner finds that there is an abnormally high incidence of arson in properties that are insured through commercial monoline fire policies, have a certain type of occupancy, or are located in a certain geographic area of the State, the Commissioner shall require that an antiarson application be used to obtain property insurance covering the peril of fire for property that is insured through that type of policy, has that type of occupancy, or is located in that geographic area of the State.</text> </level> <level label="b"> <text>The Commissioner shall require that an antiarson application be completed when a property insurance policy or contract covering the peril of fire is assigned because of the transfer of a major financial interest in the insured real property, if an antiarson application otherwise would be required under this subtitle.</text> </level> <level label="c"> <text>If, after a public hearing, the Commissioner finds that properties that are insured through a type of policy other than a commercial monoline fire policy have an abnormally high incidence of arson, the Commissioner may extend the application of this subtitle to properties insured through that other type of policy.</text> </level> <level label="d"> <level label="1"> <text>The Commissioner may not require the use of any application for property insurance covering the peril of fire other than an antiarson application.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection does not prohibit the Commissioner from requiring the use of alternative antiarson applications in accordance with § 19-306 of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-305" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <level label="1"> <text>The Commissioner shall adopt a two-tier antiarson application form that requires an applicant to complete a second-tier supplementary application if the initial first-tier application elicits certain predesignated answers.</text> </level> <level label="2"> <text>In adopting the antiarson application form, the Commissioner shall consider generally recognized two-tier application forms.</text> </level> </level> <level label="b"> <text>An antiarson application shall include:</text> <level label="1"> <text>the name and address of the applicant, any mortgagee, and any other party with an ownership interest in the property to be insured;</text> </level> <level label="2"> <text>the amount of insurance requested and the method of valuation used to establish that amount;</text> </level> <level label="3"> <text>the dates and selling prices of the property to be insured in all real estate transactions involving the property during the 3-year period immediately preceding the date of the antiarson application;</text> </level> <level label="4"> <text>the applicant’s history of losses during the 5-year period immediately preceding the date of the antiarson application with regard to any property:</text> <level label="i"> <text>in which the applicant held an interest, including a partnership or mortgage interest, that is substantial; and</text> </level> <level label="ii"> <text>that sustained a fire loss exceeding 25% of the insured value;</text> </level> </level> <level label="5"> <text>all taxes that are unpaid or overdue for 1 or more years; and</text> </level> <level label="6"> <text>the present occupancy of the property to be insured.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-306" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <text>The Commissioner may require the use of an alternative antiarson application if, after a public hearing, the Commissioner finds that:</text> <level label="1"> <text>there is an abnormally high incidence of arson in properties that are insured through a certain type of policy, are in a certain class of property, or are located in a certain geographic area of the State; and</text> </level> <level label="2"> <text>in accordance with this subtitle, the antiarson application described in § 19-305 of this subtitle was implemented with respect to that type of policy, class of property, or geographic area of the State.</text> </level> </level> <level label="b"> <text>An alternative antiarson application may be mandated only for the types of policies, types of occupancies, and geographic areas of the State that otherwise would require the use of an antiarson application under this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-307" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <level label="1"> <text>An antiarson application required under this subtitle is a material part of the policy to which the application pertains.</text> </level> <level label="2"> <text>A material misrepresentation in an antiarson application is grounds to rescind the policy.</text> </level> </level> <level label="b"> <level label="1"> <text>Within a reasonable time as specified by the Commissioner, a policyholder shall notify the policyholder’s insurer in writing of any change in the information contained in an antiarson application.</text> </level> <level label="2"> <text>A material failure to give the notice required in paragraph (1) of this subsection, or a material misrepresentation in a notification, is grounds to rescind the policy.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-308" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <level label="1"> <text>This subsection does not apply to a contract to insure an owner-occupied dwelling for one to four families.</text> </level> <level label="2"> <text>If an antiarson application is required under this subtitle with regard to a building, an insurer may not enter into a contract to be issued after July 1, 1982, to insure the building against the peril of fire unless the insurer first receives an antiarson application signed and affirmed by the insured.</text> </level> </level> <level label="b"> <text>The designation of any geographic area of the State by the Commissioner under this subtitle is not a valid reason for an insurer to refuse to issue or renew or to terminate any policy or insurance contract.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-309" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="3" subtitle_name="Fire Insurance Application Act"> <level label="a"> <text>Notwithstanding any other law to the contrary, an insurer, for any reason not prohibited by law, may terminate any policy or insurance contract for which an antiarson application or alternative antiarson application is required under this subtitle at any time within 90 days after the insurer accepts the antiarson application or alternative antiarson application.</text> </level> <level label="b"> <text>An insurer shall state the specific reasons for terminating a policy or insurance contract in the notice of termination to the insured.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-402" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="4" subtitle_name="Workers' Compensation Insurance"> <level label="a"> <text>An insurer may not issue a workers’ compensation insurance policy unless the State Workers’ Compensation Commission has approved the form of the policy.</text> </level> <level label="b"> <text>Each policy of workers’ compensation insurance shall include the following provisions:</text> <level label="1"> <text>the State Workers’ Compensation Commission, in the name of the State and for the benefit of a person entitled to compensation under the policy, may enforce the liability of the insurer for payment of compensation by:</text> <level label="i"> <text>making the insurer a party to the original claim application; or</text> </level> <level label="ii"> <text>filing a separate claim application;</text> </level> </level> <level label="2"> <text>the bankruptcy or insolvency of an employer does not relieve the insurer from payment of compensation for injury or death of a covered employee occurring during the life of the policy;</text> </level> <level label="3"> <text>as between the employee and the insurer, if the employer receives notice or has knowledge of the occurrence of an accidental injury, occupational disease, hernia, or hearing loss, the insurer is deemed also to have received the notice or have the knowledge;</text> </level> <level label="4"> <text>for the purposes of Titles 9 and 10 of the Labor and Employment Article, the insurer is subject to the same jurisdiction as the employer; and</text> </level> <level label="5"> <text>each award, decision, finding, or order against the employer for payment of compensation under Titles 9 and 10 of the Labor and Employment Article also is binding on the insurer.</text> </level> </level> <level label="c"> <level label="1"> <text>A person that violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000.</text> </level> <level label="2"> <text>The Commissioner may revoke the certificate of authority of a person that is convicted under this section.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-403" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="4" subtitle_name="Workers' Compensation Insurance"> <level label="a"> <text>The Commissioner may:</text> <level label="1"> <text>determine whether the premium rates of an insurer adequately cover the risks applicable to a workers’ compensation insurance policy under Titles 9 and 10 of the Labor and Employment Article; and</text> </level> <level label="2"> <text>require the insurer to set premium rates that are adequate to cover those risks.</text> </level> </level> <level label="b"> <text>Each insurer shall set premium rates for workers’ compensation insurance in accordance with the requirements of the Commissioner under subsection (a) of this section.</text> </level> <level label="c"> <level label="1"> <text>A person that violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000.</text> </level> <level label="2"> <text>The Commissioner may revoke the certificate of authority of a person that is convicted under this section.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-404" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="4" subtitle_name="Workers' Compensation Insurance"> <level label="a"> <text>A workers’ compensation insurance policy issued or delivered in the State may provide for deductibles.</text> </level> <level label="b"> <text>When a claim is payable under a workers’ compensation insurance policy with deductibles:</text> <level label="1"> <text>the insurer shall pay the claim including any applicable deductible; and</text> </level> <level label="2"> <text>the employer shall reimburse the insurer for any amount paid up to the limit of any applicable deductible.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-405" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="4" subtitle_name="Workers' Compensation Insurance"> <text>When a workers’ compensation insurance policy is renewed, the insurer shall give the employer a conspicuous written notice that:</text> <level label="1"> <text>the employer must have a work permit for each minor employee as required by Title 3, Subtitle 2 of the Labor and Employment Article; and</text> </level> <level label="2"> <text>if the employer does not have a work permit for a minor employee:</text> <level label="i"> <text>the State Workers’ Compensation Commission may award twice the compensation and death benefits otherwise allowed under Title 9, Subtitle 6 of the Labor and Employment Article in a claim by that employee or that employee’s dependent; and</text> </level> <level label="ii"> <text>the employer is solely liable for any increase in compensation or death benefits in a claim by that employee or that employee’s dependent.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-406" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="4" subtitle_name="Workers' Compensation Insurance"> <level label="a"> <text>This section does not apply to the cancellation of a policy or binder of workers’ compensation insurance by an insurer during the 45–day underwriting period in accordance with § 12–106 of this article.</text> </level> <level label="b"> <text>Except for a cancellation for nonpayment of premium, an insurer may not cancel or refuse to renew a workers’ compensation insurance policy before its expiration unless, at least 45 days before the date of cancellation or nonrenewal, the insurer:</text> <level label="1"> <text>serves on the employer, by personal service or certified mail addressed to the last known address of the employer, a notice of intention to cancel or nonrenew the policy; and</text> </level> <level label="2"> <text>files a copy of the notice with the State Workers’ Compensation Commission’s designee.</text> </level> </level> <level label="c"> <text>Notice under this section may be given:</text> <level label="1"> <text>if the employer is a corporation, to an agent or officer of the corporation on whom legal process may be served; and</text> </level> <level label="2"> <text>if the employer is a partnership, to a partner.</text> </level> </level> <level label="d"> <text>Notice under this section shall state when the cancellation or nonrenewal takes effect.</text> </level> <level label="e"> <text>Whenever an employer receives a notice under this section, the employer immediately shall secure coverage in accordance with § 9–402 of the Labor and Employment Article that will be in effect when the cancellation takes effect.</text> </level> <level label="f"> <level label="1"> <text>The notice shall state the insurer’s actual reason for proposing the cancellation or nonrenewal of the policy.</text> </level> <level label="2"> <text>The Commissioner may not disallow a proposed action of an insurer because the statement of actual reason contains:</text> <level label="i"> <text>grammatical, typographical, or other errors, if the errors are not material to the proposed action and are not misleading;</text> </level> <level label="ii"> <text>surplus information, if the surplus information is not misleading; or</text> </level> <level label="iii"> <text>erroneous information, if in the absence of the erroneous information there is a sufficient basis to support the proposed action.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>At least 10 days before the date of cancellation of a workers’ compensation insurance policy for nonpayment of premium, the insurer shall send to the employer, by certificate of mail, a written notice of the intention to cancel for nonpayment of premium.</text> </level> <level label="2"> <text>An insurer shall file a copy of the notice sent under paragraph (1) of this subsection with the State Workers’ Compensation Commission’s designee.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-501" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Motor vehicle” means a vehicle, including a trailer, that is operated or designed for operation on a public road by any power other than animal or muscular power.</text> </level> <level label="2"> <text>“Motor vehicle” does not include:</text> <level label="i"> <text>a bus as defined in § 11-105 of the Transportation Article; or</text> </level> <level label="ii"> <text>a taxicab as defined in § 11-165 of the Transportation Article.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>“Motor vehicle accident” means an occurrence involving a motor vehicle that results in damage to property or injury to a person.</text> </level> <level label="2"> <text>“Motor vehicle accident” does not include an occurrence that is caused intentionally by or at the direction of the insured.</text> </level> </level> <level label="d"> <text>“Named insured” means the person denominated in the declarations in a motor vehicle liability insurance policy.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-502" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This subtitle does not affect Title 17 of the Transportation Article.</text> </level> <level label="b"> <text>Neither this subtitle nor Title 17 of the Transportation Article prevents an insurer from issuing, selling, or delivering motor vehicle liability insurance policies that provide liability coverage in excess of the requirements of the Maryland Vehicle Law.</text> </level> <level label="c"> <level label="1"> <text>This subtitle does not prohibit an insurer from providing benefits for Christian Science care and treatment.</text> </level> <level label="2"> <text>Expenses for Christian Science care and treatment constitute economic loss for purposes of this subtitle.</text> </level> </level> <level label="d"> <text>This subtitle does not affect the right of a person to claim and sue for damages or losses that the person sustains as the result of a motor vehicle accident.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-503" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>The Commissioner may adopt regulations to carry out this subtitle.</text> </level> <level label="b"> <text>The Commissioner may review any motor vehicle liability insurance policy issued, sold, or delivered in the State to determine whether it complies with this subtitle and regulations adopted under this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-503.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>In this section, “insurance identification card” means a card issued by or on behalf of an insurer, in a form that the Commissioner prescribes or approves, as an indication that the insurer has issued a motor vehicle liability insurance policy meeting the requirements of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>An insurer that issues, sells, or delivers a motor vehicle liability insurance policy in the State shall provide to an insured at the time the motor vehicle liability insurance policy is initially issued and at each renewal an insurance identification card that indicates:</text> <level label="i"> <text>the first named insured on the motor vehicle liability insurance policy;</text> </level> <level label="ii"> <text>the motor vehicle covered under the motor vehicle liability insurance policy; and</text> </level> <level label="iii"> <text>the period for which coverage under the motor vehicle liability insurance policy is in effect.</text> </level> </level> <level label="2"> <level label="i"> <text>If an insured and an insurer both consent, an insurance identification card may be produced in electronic format.</text> </level> <level label="ii"> <text>Acceptable electronic formats include display of electronic images on a cellular phone or any other type of portable electronic device.</text> </level> </level> <level label="3"> <level label="i"> <text>Except as provided in subparagraphs (ii) and (iii) of this paragraph, an insurance identification card shall be valid only for the period for which motor vehicle liability insurance coverage has been paid by the insured.</text> </level> <level label="ii"> <text>If the insured is on an insurer–sponsored payment plan or has financed premiums through a premium finance company, the insurance identification card may be issued for periods of 6 months even if the payment by the insured is for a period of less than 6 months.</text> </level> <level label="iii"> <text>For a 12–month commercial motor vehicle liability insurance policy covering three or more vehicles, the insurance identification card may be issued for a period of 12 months even if the payment by the insured is for a period of less than 12 months.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-504" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <text>Each motor vehicle liability insurance policy issued, sold, or delivered in the State shall provide the minimum liability coverage specified in Title 17 of the Transportation Article.</text> </section> <section article="gin" article_name="Insurance" number="19-504.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section applies only when the liability coverage under a policy or binder of private passenger motor vehicle liability insurance exceeds the amount required under § 17-103 of the Transportation Article.</text> </level> <level label="b"> <text>An insurer shall offer to the first named insured under a policy or binder of private passenger motor vehicle liability insurance liability coverage for claims made by a family member in the same amount as the liability coverage for claims made by a nonfamily member under the policy or binder.</text> </level> <level label="c"> <level label="1"> <text>An offer made under this section shall be made on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The form may be part of the insurance application, policy, contract, or binder.</text> </level> <level label="3"> <text>The form shall clearly and concisely explain in 10 point boldface type:</text> <level label="i"> <text>the nature, extent, benefit, and cost of the amount of liability coverage for claims made by family members that is available to the first named insured; and</text> </level> <level label="ii"> <text>that an insurer may not refuse to underwrite a first named insured because the first named insured requests or elects the liability coverage for claims made by family members in an amount equal to the coverage provided for claims made by nonfamily members.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>An insurer may not refuse to underwrite a first named insured because the first named insured requests or elects the liability coverage for claims made by family members in an amount equal to the coverage provided for claims made by nonfamily members.</text> </level> <level label="2"> <text>An insurer that violates this subsection is subject to the penalties provided in §§ 4-113 and 4-114 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-505" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>Unless waived in accordance with § 19–506 of this subtitle or rejected in accordance with § 19–506.1 of this subtitle, each insurer that issues, sells, or delivers a motor vehicle liability insurance policy in the State shall provide coverage for the medical, hospital, and disability benefits described in this section for each of the following individuals:</text> <level label="1"> <text>except for individuals specifically excluded under § 27–609 of this article:</text> <level label="i"> <text>the first named insured, and any family member of the first named insured who resides in the first named insured’s household, who is injured in any motor vehicle accident, including an accident that involves an uninsured motor vehicle or a motor vehicle the identity of which cannot be ascertained; and</text> </level> <level label="ii"> <text>any other individual who is injured in a motor vehicle accident while using the insured motor vehicle with the express or implied permission of the named insured;</text> </level> </level> <level label="2"> <text>an individual who is injured in a motor vehicle accident while occupying the insured motor vehicle as a guest or passenger; and</text> </level> <level label="3"> <text>an individual who is injured in a motor vehicle accident that involves the insured motor vehicle:</text> <level label="i"> <text>as a pedestrian; or</text> </level> <level label="ii"> <text>while in, on, or alighting from a vehicle that is operated by animal or muscular power.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “income” means:</text> <level label="i"> <text>wages, salaries, tips, commissions, professional fees, and other earnings from work or employment;</text> </level> <level label="ii"> <text>earnings from a business or farm owned individually, jointly, or in partnership; and</text> </level> <level label="iii"> <text>to the extent earnings are paid or payable in property or services instead of in cash, the reasonable value of the property or services.</text> </level> </level> <level label="2"> <text>The minimum medical, hospital, and disability benefits provided by an insurer under this section shall include up to $2,500 for:</text> <level label="i"> <text>payment of all reasonable and necessary expenses that arise from a motor vehicle accident and that are incurred within 3 years after the accident for necessary prosthetic devices and ambulance, dental, funeral, hospital, medical, professional nursing, surgical, and X–ray services;</text> </level> <level label="ii"> <text>payment of benefits for 85% of income lost:</text> <level label="1"> <text>within 3 years after, and resulting from, a motor vehicle accident; and</text> </level> <level label="2"> <text>by an injured individual who was earning or producing income when the accident occurred; and</text> </level> </level> <level label="iii"> <text>payments made in reimbursement of reasonable and necessary expenses incurred within 3 years after a motor vehicle accident for essential services ordinarily performed for the care and maintenance of the family or family household by an individual who was injured in the accident and not earning or producing income when the accident occurred.</text> </level> </level> <level label="3"> <text>As a condition of providing loss of income benefits under this subsection, an insurer may require the injured individual to furnish the insurer with reasonable medical proof of the injury causing loss of income.</text> </level> </level> <level label="c"> <level label="1"> <text>An insurer may exclude from the coverage described in this section benefits for:</text> <level label="i"> <text>an individual, otherwise insured under the policy, who:</text> <level label="1"> <text>intentionally causes the motor vehicle accident resulting in the injury for which benefits are claimed;</text> </level> <level label="2"> <text>is a nonresident of the State and is injured as a pedestrian in a motor vehicle accident that occurs outside of the State;</text> </level> <level label="3"> <text>is injured in a motor vehicle accident while operating or voluntarily riding in a motor vehicle that the individual knows is stolen; or</text> </level> <level label="4"> <text>is injured in a motor vehicle accident while committing a felony or while violating § 21–904 of the Transportation Article; or</text> </level> </level> <level label="ii"> <text>the named insured or a family member of the named insured who resides in the named insured’s household for an injury that occurs while the named insured or family member is occupying an uninsured motor vehicle owned by:</text> <level label="1"> <text>the named insured; or</text> </level> <level label="2"> <text>an immediate family member of the named insured who resides in the named insured’s household.</text> </level> </level> </level> <level label="2"> <text>In the case of motorcycles, mopeds, or motor scooters, an insurer may:</text> <level label="i"> <text>exclude the economic loss benefits described in this section; or</text> </level> <level label="ii"> <text>offer the economic loss benefits with deductibles, options, or specific exclusions.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-506" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>If the first named insured does not wish to obtain the benefits described in § 19-505 of this subtitle, the first named insured shall make an affirmative written waiver of those benefits.</text> </level> <level label="2"> <text>If the first named insured does not make an affirmative written waiver under this section, the insurer shall provide the coverage described in § 19-505 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>A waiver made under this section constitutes a waiver of all the benefits described in § 19-505 of this subtitle, whether provided under:</text> <level label="i"> <text>the first named insured’s policy;</text> </level> <level label="ii"> <text>any other motor vehicle liability insurance policy issued in the State; or</text> </level> <level label="iii"> <text>another form of security used in place of a motor vehicle liability insurance policy as authorized under § 17-103 of the Transportation Article.</text> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, a waiver made under this section is binding on the following individuals covered by the policy:</text> <level label="i"> <text>each named insured;</text> </level> <level label="ii"> <text>each listed driver; and</text> </level> <level label="iii"> <text>each member of the first named insured’s family residing in the first named insured’s household who is at least 16 years old.</text> </level> </level> <level label="3"> <text>An individual listed in paragraph (2)(ii) or (iii) of this subsection may recover the benefits described in § 19-505 of this subtitle under another motor vehicle liability insurance policy if that individual:</text> <level label="i"> <text>is the first named insured under the other policy;</text> </level> <level label="ii"> <text>has not waived the benefits described in § 19-505 of this subtitle under the other policy; and</text> </level> <level label="iii"> <text>is not a named insured under any other motor vehicle liability insurance policy under which a waiver of the benefits described in § 19-505 of this subtitle is in effect.</text> </level> </level> </level> <level label="c"> <text>A waiver made under this section is not effective unless, prior to the waiver, the insurer gives the first named insured written notice of the nature, extent, and cost of the coverage described in § 19-505 of this subtitle.</text> </level> <level label="d"> <level label="1"> <text>A waiver made under this section shall be made on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The form may be part of the insurance contract.</text> </level> <level label="3"> <text>The form shall clearly and concisely explain in 10 point boldface type:</text> <level label="i"> <text>the nature, extent, and cost of the coverage that would be provided under the policy if not waived by the first named insured;</text> </level> <level label="ii"> <text>each effect of a waiver as stated in subsection (b) of this section;</text> </level> <level label="iii"> <text>that a failure of the first named insured to make a waiver requires an insurer to provide the coverage described in § 19-505 of this subtitle;</text> </level> <level label="iv"> <text>that an insurer may not refuse to underwrite a person because the person refuses to waive the coverage described in § 19-505 of this subtitle; and</text> </level> <level label="v"> <text>that a waiver made under this section must be an affirmative written waiver.</text> </level> </level> </level> <level label="e"> <text>A waiver made under this section by a person that is insured continuously by the Maryland Automobile Insurance Fund or the insurer is effective until the waiver is withdrawn in writing.</text> </level> <level label="f"> <level label="1"> <text>An insurer may not refuse to underwrite a person because the person refuses to waive the coverage described in § 19-505 of this subtitle.</text> </level> <level label="2"> <text>An insurer that violates this subsection is subject to the penalties provided by §§ 4-113 and 4-114 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-506.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>Notwithstanding §§ 19–505 and 19–506 of this subtitle, a first named insured is not required to obtain coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle under a motor vehicle liability insurance policy that:</text> <level label="i"> <text>provides coverage that does not exceed the minimum liability coverage specified in § 17–103(b) of the Transportation Article; and</text> </level> <level label="ii"> <level label="1"> <text>subject to paragraph (2) of this subsection, is issued, sold, or delivered by the Maryland Automobile Insurance Fund; or</text> </level> <level label="2"> <text>subject to paragraph (3) of this subsection, is issued, sold, or delivered by an insurer other than the Maryland Automobile Insurance Fund.</text> </level> </level> </level> <level label="2"> <text>The Maryland Automobile Insurance Fund shall offer a first named insured, at the time of application for a policy described in paragraph (1)(i) of this subsection, the option to reject coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle if, prior to the application, the applicant has not been insured continuously by the Maryland Automobile Insurance Fund for at least 1 year.</text> </level> <level label="3"> <text>An insurer other than the Maryland Automobile Insurance Fund may offer a first named insured, at the time of application for a policy described in paragraph (1)(i) of this subsection, the option to reject coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle if:</text> <level label="i"> <text>prior to the application, the applicant was insured by an insurer other than the Maryland Automobile Insurance Fund; and</text> </level> <level label="ii"> <text>the insurer under the prior policy canceled the policy before the end of the policy’s term.</text> </level> </level> </level> <level label="b"> <text>At the time of application for a policy described in subsection (a)(1)(i) of this section, the first named insured shall elect in writing to:</text> <level label="1"> <text>obtain coverage for the benefits described in § 19–505 of this subtitle;</text> </level> <level label="2"> <text>waive coverage for the benefits described in § 19–505 of this subtitle in accordance with § 19–506 of this subtitle; or</text> </level> <level label="3"> <text>reject coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle in accordance with this section.</text> </level> </level> <level label="c"> <level label="1"> <text>The election under subsection (b) of this section shall be made on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The form may be part of the insurance contract.</text> </level> <level label="3"> <text>The form shall clearly and concisely explain in 10 point boldface type:</text> <level label="i"> <text>that the first named insured must elect in writing to:</text> <level label="1"> <text>obtain coverage for the benefits described in § 19–505 of this subtitle;</text> </level> <level label="2"> <text>waive coverage for the benefits described in § 19–505 of this subtitle in accordance with § 19–506 of this subtitle; or</text> </level> <level label="3"> <text>reject coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle in accordance with this section;</text> </level> </level> <level label="ii"> <text>the nature, extent, and cost of coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle if not rejected by the first named insured;</text> </level> <level label="iii"> <text>that the election to reject coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle in accordance with this section is effective until the end of the policy’s term unless the first named insured:</text> <level label="1"> <text>withdraws the rejection in writing;</text> </level> <level label="2"> <text>obtains a motor vehicle liability insurance policy for the insured motor vehicle from another insurer; or</text> </level> <level label="3"> <text>increases any coverage under the policy to an amount that exceeds the minimum liability coverage specified in § 17–103(b) of the Transportation Article; and</text> </level> </level> <level label="iv"> <text>that on renewal of the policy, unless the first named insured notifies the insurer in writing that the first named insured wishes to obtain coverage for the benefits described in § 19–505 of this subtitle, the insurer shall provide the coverage described in § 19–506 of this subtitle.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A rejection of coverage for the benefits described in §§ 19–505 and 19–506 of this subtitle in accordance with this section is effective until the end of the policy’s term unless the first named insured:</text> <level label="i"> <text>withdraws the rejection in writing;</text> </level> <level label="ii"> <text>obtains a motor vehicle liability insurance policy for the insured motor vehicle from another insurer; or</text> </level> <level label="iii"> <text>increases any coverage under the policy to an amount that exceeds the minimum liability coverage specified in § 17–103(b) of the Transportation Article.</text> </level> </level> <level label="2"> <text>On renewal of the policy, unless the first named insured notifies the insurer in writing that the first named insured wishes to obtain coverage for the benefits described in § 19–505 of this subtitle, the insurer shall provide the coverage described in § 19–506 of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-507" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>The benefits described in § 19–505 of this subtitle shall be payable without regard to:</text> <level label="1"> <text>the fault or nonfault of the named insured or the recipient of benefits in causing or contributing to the motor vehicle accident; and</text> </level> <level label="2"> <text>any collateral source of medical, hospital, or wage continuation benefits.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, if the insured has both coverage for the benefits described in § 19–505 of this subtitle and a collateral source of medical, hospital, or wage continuation benefits, the insurer or insurers may coordinate the policies to provide for nonduplication of benefits, subject to appropriate reductions in premiums for one or both of the policies approved by the Commissioner.</text> </level> <level label="2"> <text>The named insured may:</text> <level label="i"> <text>elect to coordinate the policies by indicating in writing which policy is to be the primary policy; or</text> </level> <level label="ii"> <text>reject the coordination of policies and nonduplication of benefits.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>In this subsection, “increase the premium” includes an increase in total premium for a policy due to:</text> <level label="i"> <text>a surcharge;</text> </level> <level label="ii"> <text>retiering or other reclassification of the policy; or</text> </level> <level label="iii"> <text>removal or reduction of a discount.</text> </level> </level> <level label="2"> <text>An insurer that issues a policy that contains the coverage described in § 19–505 of this subtitle:</text> <level label="i"> <text>may not increase the premium on the policy due to a claim or payment made under that coverage; and</text> </level> <level label="ii"> <text>at the time the policy is issued, shall notify the policyholder in writing that the insurer may not increase the premium on the policy due to a claim or payment made under that coverage.</text> </level> </level> </level> <level label="d"> <text>An insurer that provides the benefits described in § 19–505 of this subtitle does not have a right of subrogation and does not have a claim against any other person or insurer to recover any benefits paid because of the alleged fault of the other person in causing or contributing to a motor vehicle accident.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-508" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, an insurer shall make all payments of the benefits described in § 19-505 of this subtitle periodically as claims for the benefits arise and within 30 days after the insurer receives satisfactory proof of claim.</text> </level> <level label="2"> <text>A policy that contains the coverage described in § 19-505 of this subtitle may:</text> <level label="i"> <text>set a period of not less than 12 months after the date of the motor vehicle accident within which the original claim for benefits must be filed with the insurer; and</text> </level> <level label="ii"> <text>provide that if, after a lapse in the period of total disability or in the medical treatment of an injured individual who has received benefits under that coverage, the individual claims additional benefits based on an alleged recurrence of the injury for which the original claim for benefits was made, the insurer may require reasonable medical proof of the alleged recurrence.</text> </level> </level> <level label="3"> <text>The aggregate benefits payable to an individual under this subsection may not exceed the maximum limits stated in the policy.</text> </level> </level> <level label="b"> <level label="1"> <text>When an insurer that provides the benefits described in § 19-505 of this subtitle receives written notice from an insured of the occurrence of a motor vehicle accident for which benefits may be available under § 19-505 of this subtitle, the insurer shall notify the insured by mail of the latest date on which a claim may be filed for benefits under § 19-505 of this subtitle as provided in subsection (a)(2)(i) of this section.</text> </level> <level label="2"> <text>An insurer is not required under paragraph (1) of this subsection to send any notice to the insured as to any first party claim for benefits other than the benefits under § 19-505 of this subtitle.</text> </level> </level> <level label="c"> <text>Payments of benefits that are not made in accordance with this section and that are overdue shall bear simple interest at the rate of 1.5% per month.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-509" future_version_removed="true" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>In this section, “uninsured motor vehicle” means a motor vehicle:</text> <level label="1"> <text>the ownership, maintenance, or use of which has resulted in the bodily injury or death of an insured; and</text> </level> <level label="2"> <text>for which the sum of the limits of liability under all valid and collectible liability insurance policies, bonds, and securities applicable to bodily injury or death:</text> <level label="i"> <text>is less than the amount of coverage provided under this section; or</text> </level> <level label="ii"> <text>has been reduced by payment to other persons of claims arising from the same occurrence to an amount less than the amount of coverage provided under this section.</text> </level> </level> </level> <level label="b"> <text>The uninsured motorist coverage required by this section does not apply to a motor vehicle liability insurance policy:</text> <level label="1"> <text>that insures a motor vehicle that:</text> <level label="i"> <text>is not subject to registration under § 13–402 of the Transportation Article because it is not driven on a highway; or</text> </level> <level label="ii"> <text>is exempt from registration under § 13–402(c)(10) of the Transportation Article; or</text> </level> </level> <level label="2"> <text>if the first named insured under a policy or binder of private passenger motor vehicle liability insurance has enhanced underinsured motorist coverage under § 19–509.1 of this subtitle.</text> </level> </level> <level label="c"> <text>In addition to any other coverage required by this subtitle, each motor vehicle liability insurance policy issued, sold, or delivered in the State after July 1, 1975, shall contain coverage for damages, subject to the policy limits, that:</text> <level label="1"> <text>the insured is entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injuries sustained in a motor vehicle accident arising out of the ownership, maintenance, or use of the uninsured motor vehicle;</text> </level> <level label="2"> <text>the insured is entitled to recover from the owner or operator of an uninsured motor vehicle because of property damage, including loss of use of the insured vehicle; and</text> </level> <level label="3"> <text>a surviving relative of the insured, who is described in § 3–904 of the Courts Article, is entitled to recover from the owner or operator of an uninsured motor vehicle because the insured died as the result of a motor vehicle accident arising out of the ownership, maintenance, or use of the uninsured motor vehicle.</text> </level> </level> <level label="d"> <text>The uninsured motorist coverage required by this section shall be in the form and subject to the conditions that the Commissioner approves.</text> </level> <level label="e"> <level label="1"> <text>The uninsured motorist coverage contained in a motor vehicle liability insurance policy:</text> <level label="i"> <text>shall at least equal:</text> <level label="1"> <text>the amounts required by Title 17 of the Transportation Article for bodily injury and property damage, including loss of use of the insured vehicle; and</text> </level> <level label="2"> <text>the coverage provided to a qualified person under Title 20, Subtitle 6 of this article; and</text> </level> </level> <level label="ii"> <text>may not exceed the amount of liability coverage provided under the policy.</text> </level> </level> <level label="2"> <text>Unless waived in accordance with § 19–510 of this subtitle, the amount of uninsured motorist coverage provided under a private passenger motor vehicle liability insurance policy shall equal the amount of liability coverage provided under the policy.</text> </level> </level> <level label="f"> <text>An insurer may exclude from the uninsured motorist coverage required by this section benefits for:</text> <level label="1"> <text>the named insured or a family member of the named insured who resides in the named insured’s household for an injury that occurs when the named insured or family member is occupying or is struck as a pedestrian by an uninsured motor vehicle that is owned by the named insured or an immediate family member of the named insured who resides in the named insured’s household; and</text> </level> <level label="2"> <text>the named insured, a family member of the named insured who resides in the named insured’s household, and any other individual who has other applicable motor vehicle insurance for an injury that occurs when the named insured, family member, or other individual is occupying or is struck as a pedestrian by the insured motor vehicle while the motor vehicle is operated or used by an individual who is excluded from coverage under § 27–609 of this article.</text> </level> </level> <level label="g"> <text>The limit of liability for an insurer that provides uninsured motorist coverage under this section is the amount of that coverage less the amount paid to the insured, that exhausts any applicable liability insurance policies, bonds, and securities, on behalf of any person that may be held liable for the bodily injuries or death of the insured.</text> </level> <level label="h"> <level label="1"> <text>A policy that, as its primary purpose, provides coverage in excess of other valid and collectible insurance or qualified self–insurance may include the uninsured motorist coverage provided for in this section.</text> </level> <level label="2"> <text>The uninsured motorist coverage required by this section is primary to any right to recovery from the Maryland Automobile Insurance Fund under Title 20, Subtitle 6 of this article.</text> </level> </level> <level label="i"> <text>An endorsement or provision that protects the insured against damages caused by an uninsured motor vehicle that is contained in a policy issued and delivered in the State is deemed to cover damages caused by a motor vehicle insured by a liability insurer that is insolvent or otherwise unable to pay claims to the same extent and in the same manner as if the damages were caused by an uninsured motor vehicle.</text> </level> <level label="j"> <text>A provision in a motor vehicle liability insurance policy issued after July 1, 1975, about coverage for damages sustained by the insured as a result of the operation of an uninsured motor vehicle that requires a dispute between the insured and the insurer to be submitted to binding arbitration is prohibited and is of no legal effect.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-509.1" future_version_removed="true" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>In this section, “underinsured motor vehicle” means a motor vehicle that has liability coverage in an amount less than, more than, or equal to the uninsured motorist coverage provided under the insured party’s motor vehicle liability insurance policy.</text> </level> <level label="b"> <text>The enhanced underinsured motorist coverage required by this section does not apply to a motor vehicle liability insurance policy:</text> <level label="1"> <text>that insures a motor vehicle that:</text> <level label="i"> <text>is not subject to registration under § 13–402 of the Transportation Article because it is not driven on a highway; or</text> </level> <level label="ii"> <text>is exempt from registration under § 13–402(c)(10) of the Transportation Article;</text> </level> </level> <level label="2"> <text>if a first named insured under a new policy or binder of private passenger motor vehicle liability insurance issued on or after July 1, 2024, has waived enhanced underinsured motorist coverage under this section; or</text> </level> <level label="3"> <text>if a first named insured on a renewal policy issued before July 1, 2024, has not elected to obtain enhanced underinsured motorist coverage under this section.</text> </level> </level> <level label="c"> <level label="1"> <text>Unless waived in accordance with this subsection, an insurer shall provide enhanced underinsured motorist coverage at the time of purchase of a private passenger motor vehicle liability insurance policy.</text> </level> <level label="2"> <level label="i"> <text>The first named insured under a policy or binder of private passenger motor vehicle liability insurance may elect to waive enhanced underinsured motorist coverage and instead maintain uninsured motorist coverage required under § 19–509 of this subtitle.</text> </level> <level label="ii"> <text>If the first named insured does not wish to obtain the enhanced underinsured motorist coverage under this section, the first named insured shall make an affirmative written statement waiving the coverage.</text> </level> <level label="iii"> <text>A waiver made under this subsection is not effective unless, before the waiver, the insurer gives the first named insured written notice of the nature, extent, benefit, and cost of the level of the enhanced underinsured motorist coverage being waived.</text> </level> <level label="iv"> <level label="1"> <text>A waiver made under this subsection shall be made on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The form may be part of the insurance contract.</text> </level> <level label="3"> <text>The form shall clearly and concisely explain in at least 14 point boldface type:</text> </level> <level label="A"> <text>the nature, extent, benefit, and cost of the level of the enhanced underinsured motorist coverage that would be provided under the policy if not waived by the first named insured;</text> </level> <level label="B"> <text>that a failure of the first named insured to make a waiver requires the insurer to provide enhanced underinsured motorist coverage;</text> </level> <level label="C"> <text>that the insurer may not refuse to underwrite a person because the person refuses to waive the enhanced underinsured motorist coverage under this subsection; and</text> </level> <level label="D"> <text>that a waiver made under this subsection must be an affirmative written waiver.</text> </level> </level> <level label="v"> <text>If the first named insured does not make an affirmative written statement waiving the enhanced underinsured motorist coverage, the insurer shall provide the coverage under this section.</text> </level> </level> <level label="3"> <text>Unless the first named insured affirmatively makes a change in writing, the election to waive enhanced underinsured motorist coverage applies to all subsequent renewals of coverage and to all other policies or endorsements that extend, change, supersede, or replace an existing private passenger motor vehicle insurance policy issued to the first named insured.</text> </level> </level> <level label="d"> <text>In addition to any other coverage required by this subtitle, each private passenger motor vehicle liability insurance policy issued, sold, or delivered in the State on or after July 1, 2024, to an insured that maintains enhanced underinsured motorist coverage instead of the uninsured motorist coverage required under § 19–509 of this subtitle shall contain coverage for damages, subject to the policy limits, that:</text> <level label="1"> <text>the insured is entitled to recover from the owner or operator of an underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident arising out of the ownership, maintenance, or use of the underinsured motor vehicle;</text> </level> <level label="2"> <text>the insured is entitled to recover from the owner or operator of an underinsured motor vehicle because of property damage, including loss of use of the insured vehicle; and</text> </level> <level label="3"> <text>a surviving relative of the insured, who is described in § 3–904 of the Courts Article, is entitled to recover from the owner or operator of an underinsured motor vehicle because the insured died as the result of a motor vehicle accident arising out of the ownership, maintenance, or use of the underinsured motor vehicle.</text> </level> </level> <level label="e"> <text>The enhanced underinsured motorist coverage required by this section shall be on the form that the Commissioner requires.</text> </level> <level label="f"> <level label="1"> <text>The enhanced underinsured motorist coverage contained in a private passenger motor vehicle liability insurance policy:</text> <level label="i"> <text>shall at least equal:</text> <level label="1"> <text>the amounts required by Title 17 of the Transportation Article for bodily injury and property damage, including loss of use of the insured vehicle; and</text> </level> <level label="2"> <text>the coverage provided to a qualified person under Title 20, Subtitle 6 of this article; and</text> </level> </level> <level label="ii"> <text>may not exceed the amount of liability coverage provided under the policy.</text> </level> </level> <level label="2"> <text>The amount of enhanced underinsured motorist coverage provided under a private passenger motor vehicle liability insurance policy shall equal the amount of liability coverage provided under the policy.</text> </level> </level> <level label="g"> <text>An insurer may exclude from the enhanced underinsured motorist coverage required by this section benefits for:</text> <level label="1"> <text>the named insured or a family member of the named insured who resides in the named insured’s household for an injury that occurs when the named insured or family member is occupying or is struck as a pedestrian by an underinsured motor vehicle that is owned by the named insured or an immediate family member of the named insured who resides in the named insured’s household; and</text> </level> <level label="2"> <text>the named insured, a family member of the named insured who resides in the named insured’s household, and any other individual who has other applicable motor vehicle insurance for an injury that occurs when the named insured, family member, or other individual is occupying or is struck as a pedestrian by the insured motor vehicle while the motor vehicle is operated or used by an individual who is excluded from coverage under § 27–609 of this article.</text> </level> </level> <level label="h"> <text>The limit of liability for an insurer that provides enhanced underinsured motorist coverage under this section:</text> <level label="1"> <text>is subject to § 19–511.1 of this subtitle; and</text> </level> <level label="2"> <text>is the amount of that coverage without any reduction for the amount paid to the insured, that exhausts any applicable liability insurance policies, bonds, and securities, on behalf of any person that may be held liable for the bodily injuries or death of the insured.</text> </level> </level> <level label="i"> <level label="1"> <text>A policy that, as its primary purpose, provides coverage in excess of other valid and collectible insurance or qualified self–insurance may include the enhanced underinsured motorist coverage provided for in this section.</text> </level> <level label="2"> <text>The enhanced underinsured motorist coverage required by this section is primary to any right to recovery from the Maryland Automobile Insurance Fund under Title 20, Subtitle 6 of this article.</text> </level> </level> <level label="j"> <text>An endorsement or a provision that protects the insured against damages caused by an underinsured motor vehicle that is contained in a policy issued and delivered in the State is deemed to cover damages caused by a motor vehicle insured by a liability insurer that is insolvent or otherwise unable to pay claims to the same extent and in the same manner as if the damages were caused by an underinsured motor vehicle.</text> </level> <level label="k"> <text>A provision in a private passenger motor vehicle liability insurance policy issued on or after July 1, 2018, about coverage for damages sustained by the insured as a result of the operation of an underinsured motor vehicle that requires a dispute between the insured and the insurer to be submitted to binding arbitration is prohibited and is of no legal effect.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-509.2" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>A final judgment in an action for personal injury protection coverage under a motor vehicle liability insurance policy does not preclude a subsequent action for uninsured or underinsured motorist coverage arising out of the same motor vehicle accident or occurrence.</text> </level> <level label="b"> <text>A final judgment in an action for personal injury protection coverage under a private passenger motor vehicle liability insurance policy does not preclude a subsequent action for enhanced underinsured motorist coverage arising out of the same motor vehicle accident or occurrence.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-510" future_version_removed="true" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section applies only when:</text> <level label="1"> <text>the liability coverage under a policy or binder of private passenger motor vehicle liability insurance exceeds the amount required under § 17–103 of the Transportation Article; and</text> </level> <level label="2"> <text>the first named insured under a policy or binder of private passenger motor vehicle liability insurance has uninsured motorist coverage required under § 19–509 of this subtitle and has not obtained enhanced underinsured motorist coverage under § 19–509.1 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>If the first named insured under a policy or binder of private passenger motor vehicle liability insurance does not wish to obtain uninsured motorist coverage in the same amount as the liability coverage provided under the policy or binder, the first named insured shall make an affirmative written waiver of having uninsured motorist coverage in the same amount as the liability coverage.</text> </level> <level label="2"> <text>If the first named insured does not make an affirmative written waiver under this section, the insurer shall provide uninsured motorist coverage in an amount equal to the amount of the liability coverage provided under the policy or binder.</text> </level> </level> <level label="c"> <text>A waiver made under this section is not effective unless, prior to the waiver, the insurer gives the first named insured written notice of the nature, extent, benefit, and cost of the level of the uninsured motorist coverage being waived.</text> </level> <level label="d"> <level label="1"> <text>A waiver made under this section shall be made on the form that the Commissioner requires.</text> </level> <level label="2"> <text>The form may be part of the insurance contract.</text> </level> <level label="3"> <text>The form shall clearly and concisely explain in 10 point boldface type:</text> <level label="i"> <text>the nature, extent, benefit, and cost of the level of the uninsured motorist coverage that would be provided under the policy if not waived by the first named insured;</text> </level> <level label="ii"> <text>that a failure of the first named insured to make a waiver requires an insurer to provide uninsured motorist coverage in an amount equal to the amount of the liability coverage provided under the policy or binder of private passenger motor vehicle liability insurance;</text> </level> <level label="iii"> <text>that an insurer may not refuse to underwrite a person because the person refuses to waive the excess uninsured motorist coverage under this section; and</text> </level> <level label="iv"> <text>that a waiver made under this section must be an affirmative written waiver.</text> </level> </level> <level label="4"> <text>Subject to the Commissioner’s approval, a waiver made under this section may be made on the same form as the waiver made under § 19–506 of this subtitle.</text> </level> </level> <level label="e"> <text>A waiver made under this section by a person that is insured continuously by an insurer or by the Maryland Automobile Insurance Fund is effective until the waiver is withdrawn in writing.</text> </level> <level label="f"> <level label="1"> <text>An insurer may not refuse to underwrite a person because the person refuses to waive the excess uninsured motorist coverage under this section.</text> </level> <level label="2"> <text>An insurer that violates this subsection is subject to the penalties provided by §§ 4–113 and 4–114 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-511" future_version_removed="true" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section does not apply when the first named insured under a policy or binder of private passenger motor vehicle liability insurance has enhanced underinsured motorist coverage under § 19–509.1 of this subtitle instead of the uninsured motorist coverage required under § 19–509 of this subtitle.</text> </level> <level label="b"> <text>If an injured person receives a written offer from a motor vehicle insurance liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and the amount of the settlement offer, in combination with any other settlements arising out of the same occurrence, would exhaust the bodily injury or death limits of the applicable liability insurance policies, bonds, and securities, the injured person shall send by certified mail, to any insurer that provides uninsured motorist coverage for the bodily injury or death, a copy of the liability insurer’s written settlement offer.</text> </level> <level label="c"> <text>Within 60 days after receipt of the notice required under subsection (b) of this section, the uninsured motorist insurer shall send to the injured person:</text> <level label="1"> <text>written consent to acceptance of the settlement offer and to the execution of releases; or</text> </level> <level label="2"> <text>written refusal to consent to acceptance of the settlement offer.</text> </level> </level> <level label="d"> <text>Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (c)(2) of this section, the uninsured motorist insurer shall pay to the injured person the amount of the settlement offer.</text> </level> <level label="e"> <level label="1"> <text>Payment as described in subsection (d) of this section shall preserve the uninsured motorist insurer’s subrogation rights against the liability insurer and its insured.</text> </level> <level label="2"> <text>Receipt by the injured person of the payment described in subsection (d) of this section shall constitute the assignment, up to the amount of the payment, of any recovery on behalf of the injured person that is subsequently paid from the applicable liability insurance policies, bonds, and securities.</text> </level> </level> <level label="f"> <text>The injured person may accept the liability insurer’s settlement offer and execute releases in favor of the liability insurer and its insured without prejudice to any claim the injured person may have against the uninsured motorist insurer:</text> <level label="1"> <text>on receipt of written consent to acceptance of the settlement offer and to the execution of releases; or</text> </level> <level label="2"> <text>if the uninsured motorist insurer has not met the requirements of subsection (c) or subsection (d) of this section.</text> </level> </level> <level label="g"> <text>Written consent by an uninsured motorist insurer to acceptance of a settlement offer under subsection (c)(1) of this section:</text> <level label="1"> <text>may not be construed to limit the right of the uninsured motorist insurer to raise any issue relating to liability or damages in an action against the uninsured motorist insurer; and</text> </level> <level label="2"> <text>does not constitute an admission by the uninsured motorist insurer as to any issue raised in an action against the uninsured motorist insurer.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-511.1" future_version_removed="true" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section applies only when the first named insured under a policy or binder of private passenger motor vehicle liability insurance has enhanced underinsured motorist coverage under § 19–509.1 of this subtitle instead of the uninsured motorist coverage required under § 19–509 of this subtitle.</text> </level> <level label="b"> <text>If an injured person receives a written offer from a motor vehicle liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and the amount of the settlement offer, in combination with any other settlements arising out of the same occurrence, would exhaust the bodily injury or death limits of the applicable liability insurance policies, bonds, and securities, the injured person shall send by certified mail, to any insurer that provides enhanced underinsured motorist coverage for the bodily injury or death, a copy of the liability insurer’s written settlement offer.</text> </level> <level label="c"> <text>Within 60 days after receipt of the notice required under subsection (b) of this section, the enhanced underinsured motorist insurer shall send to the injured person:</text> <level label="1"> <text>written consent to acceptance of the settlement offer and to the execution of releases; or</text> </level> <level label="2"> <text>written refusal to consent to acceptance of the settlement offer.</text> </level> </level> <level label="d"> <text>Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (c)(2) of this section, the enhanced underinsured motorist insurer shall pay to the injured person the amount of the settlement offer.</text> </level> <level label="e"> <level label="1"> <text>Payment as described in subsection (d) of this section shall preserve the extended enhanced underinsured motorist insurer’s subrogation rights against the motor vehicle liability insurer and its insured.</text> </level> <level label="2"> <text>Receipt by the injured person of the payment described in subsection (d) of this section shall constitute the assignment, up to the amount of the payment, of any recovery on behalf of the injured person that is subsequently paid from the applicable liability insurance policies, bonds, and securities.</text> </level> </level> <level label="f"> <text>The injured person may accept the motor vehicle liability insurer’s settlement offer and execute releases in favor of the liability insurer and its insured without prejudice to any claim the injured person may have against the enhanced underinsured motorist insurer:</text> <level label="1"> <text>on receipt of written consent to acceptance of the settlement offer and to the execution of releases; or</text> </level> <level label="2"> <text>if the enhanced underinsured motorist insurer has not met the requirements of subsection (c) or (d) of this section.</text> </level> </level> <level label="g"> <text>Written consent by an enhanced underinsured motorist insurer to acceptance of a settlement offer under subsection (c)(1) of this section:</text> <level label="1"> <text>may not be construed to limit the right of the enhanced underinsured motorist insurer to raise any issue relating to liability or damages in an action against the enhanced underinsured motorist insurer; and</text> </level> <level label="2"> <text>does not constitute an admission by the uninsured motorist insurer as to any issue raised in an action against the enhanced underinsured motorist insurer.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-512" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>Each insurer that issues, sells, or delivers a motor vehicle insurance policy in the State shall offer collision coverage for damage to insured motor vehicles subject to deductibles of $50 to $250 in $50 increments.</text> </level> <level label="2"> <text>Collision coverage shall provide insurance, without regard to fault, against accidental property damage to the insured motor vehicle caused by physical contact of the insured motor vehicle with another motor vehicle or other object or by upset of the insured motor vehicle, if the motor vehicle accident occurs in a state, Canada, or Mexico.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “passenger car” means a motor vehicle that is:</text> <level label="i"> <text>a Class A (passenger) vehicle under § 13–912 of the Transportation Article; or</text> </level> <level label="ii"> <text>a Class M (multipurpose) vehicle under § 13–937 of the Transportation Article used primarily for transporting passengers.</text> </level> </level> <level label="2"> <text>If a private passenger motor vehicle insurance policy issued, sold, or delivered in the State includes:</text> <level label="i"> <text>collision coverage under this section, the motor vehicles insured under that coverage shall include any passenger car that is rented or used by an insured for a period of 30 days or less under a rental agreement or a peer–to–peer car sharing program agreement as otherwise defined in § 14–2101 of the Commercial Law Article; or</text> </level> <level label="ii"> <text>comprehensive coverage, the motor vehicles insured under that coverage shall include any replacement vehicle as defined under § 18–102(a)(2)(i) or § 18.5–102(a)(2)(i) of the Transportation Article.</text> </level> </level> <level label="3"> <text>Each insurer that provides a private passenger motor vehicle insurance policy that includes collision coverage shall give the insured a separate notice written in boldface type that the insured does not need a collision damage waiver or any additional collision coverage when renting or peer–to–peer car sharing a passenger car for a period of 30 days or less during the term of the policy.</text> </level> <level label="4"> <text>An insurer may not deny coverage to an insured for collision damage to a rental passenger car because:</text> <level label="i"> <text>the motor vehicle accident involved an uninsured motorist; or</text> </level> <level label="ii"> <text>the identity of the motor vehicle causing the damage cannot be ascertained.</text> </level> </level> </level> <level label="c"> <text>An insurer may offer to provide to the insured coverage for damages incurred by the insured as a result of the loss of use of a rental vehicle or a shared motor vehicle that sustains collision damage while rented by the insured.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-513" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section does not prohibit a nonprofit health service plan or an authorized insurer, with the approval of the Commissioner, from providing medical, hospital, and disability benefits in connection with motor vehicle accidents.</text> </level> <level label="b"> <level label="1"> <text>Notwithstanding any other provision of this subtitle, a person may not recover benefits under the coverages described in §§ 19–504, 19–505, 19–509, 19–509.1, and 19–512 of this subtitle from more than one motor vehicle liability insurance policy or insurer on a duplicative basis.</text> </level> <level label="2"> <text>Except as provided in § 19–509.1 of this subtitle, and notwithstanding any other provision of this subtitle, a person may not recover benefits under the coverages described in §§ 19–504, 19–505, 19–509, and 19–512 of this subtitle from more than one motor vehicle liability insurance policy or insurer on a supplemental basis.</text> </level> </level> <level label="c"> <level label="1"> <text>The insurer of a motor vehicle for which the coverage described in § 19–505 of this subtitle is in effect shall pay the benefits described in § 19–505 of this subtitle to an individual who is injured in a motor vehicle accident:</text> <level label="i"> <text>while occupying the insured motor vehicle; or</text> </level> <level label="ii"> <text>by the insured motor vehicle as a pedestrian, while in, on, or alighting from a vehicle powered by animal or muscular power, or while on or alighting from an animal.</text> </level> </level> <level label="2"> <text>An insurer may not pay benefits under paragraph (1) of this subsection to an individual who is in violation of § 17–103 of the Transportation Article.</text> </level> </level> <level label="d"> <level label="1"> <text>The insurer under a policy that contains the coverages described in §§ 19–505 and 19–509 of this subtitle shall pay the benefits described in §§ 19–505 and 19–509 to an individual insured under the policy who is injured in a motor vehicle accident:</text> <level label="i"> <text>while occupying a motor vehicle for which the coverages described in §§ 19–505 and 19–509 of this subtitle are not in effect; or</text> </level> <level label="ii"> <text>by a motor vehicle for which the coverages described in §§ 19–505 and 19–509 of this subtitle are not in effect as a pedestrian, while in, on, or alighting from a vehicle powered by animal or muscular power, or while on or alighting from an animal.</text> </level> </level> <level label="2"> <text>Benefits payable under paragraph (1) of this subsection shall be reduced to the extent of any medical or disability benefits coverage that is:</text> <level label="i"> <text>applicable to the motor vehicle for which the coverages described in §§ 19–505 and 19–509 of this subtitle are not in effect; and</text> </level> <level label="ii"> <text>collectible from the insurer of that motor vehicle.</text> </level> </level> </level> <level label="e"> <text>Benefits payable under the coverages described in §§ 19–505 and 19–509 of this subtitle shall be reduced to the extent that the recipient has recovered benefits under the workers’ compensation laws of a state or the federal government for which the provider of the workers’ compensation benefits has not been reimbursed.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-514" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <text>Authorized insurers that issue, sell, or deliver motor vehicle liability or physical damage insurance policies in the State shall arbitrate and settle all motor vehicle physical damage claims between the authorized insurers in accordance with an automobile subrogation program sponsored by the intercompany arbitration organization chosen by the authorized insurer that requests the arbitration.</text> </section> <section article="gin" article_name="Insurance" number="19-515" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <text>An insurer may not refuse to issue or renew a motor vehicle liability insurance policy under this subtitle on the ground that the applicant has been issued a citation under § 3-8A-33 of the Courts Article.</text> </section> <section article="gin" article_name="Insurance" number="19-516" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>This section applies to a motor vehicle insurance policy issued, sold, or delivered in the State that covers a motor vehicle that is specially equipped for the transportation of or operation by an individual with a disability.</text> </level> <level label="b"> <text>If a motor vehicle insurance policy described in subsection (a) of this section provides for reimbursement of the costs of a rental motor vehicle, the insurer shall, upon request of the applicant or insured, make available for the appropriate premium at the time of the issuance or renewal of the policy a daily reimbursement rate of up to $100, for a maximum of $1,500 per policy period, to allow the insured to rent a motor vehicle that is equipped similarly to the covered motor vehicle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-517" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Transportation network company” has the meaning stated in § 10–101 of the Public Utilities Article.</text> </level> <level label="3"> <text>“Transportation network operator” has the meaning stated in § 10–101 of the Public Utilities Article.</text> </level> <level label="4"> <text>“Transportation network services” has the meaning stated in § 10–101 of the Public Utilities Article.</text> </level> </level> <level label="b"> <text>Insurance required under § 10–405 of the Public Utilities Article shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under §§ 19–505 and 19–509 of this subtitle and Title 17, Subtitle 1 of the Transportation Article.</text> </level> <level label="c"> <level label="1"> <text>An authorized insurer that writes motor vehicle liability insurance in the State and the Maryland Automobile Insurance Fund may exclude any and all coverage and the duty to defend afforded under an owner’s or operator’s personal motor vehicle insurance policy for any loss or injury that occurs while the vehicle operator is providing transportation network services.</text> </level> <level label="2"> <text>If an insurer that writes motor vehicle liability insurance in the State defends or indemnifies a claim against a driver for which coverage is excluded under the terms of its policy, the insurer shall have a right of contribution against other insurers that provide insurance to the same driver in satisfaction of the requirements of § 10–405 of the Public Utilities Article at the time of the loss.</text> </level> <level label="3"> <text>Nothing in this section or § 10–405 of the Public Utilities Article shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use before July 1, 2015, that excludes coverage for motor vehicles that are used to transport passengers or property for a charge or are available for hire by the public.</text> </level> <level label="4"> <text>The right to exclude coverage and the duty to defend under paragraph (1) of this subsection applies to any coverage included in a motor vehicle liability insurance policy, including:</text> <level label="i"> <text>liability coverage for bodily injury and property damage;</text> </level> <level label="ii"> <text>uninsured and underinsured motorist coverage;</text> </level> <level label="iii"> <text>medical payments coverage;</text> </level> <level label="iv"> <text>personal injury protection coverage;</text> </level> <level label="v"> <text>comprehensive physical damage coverage; and</text> </level> <level label="vi"> <text>collision physical damage coverage.</text> </level> </level> <level label="5"> <text>If an insurer that writes motor vehicle liability insurance in the State excludes coverage for providing transportation network services, the insurer shall provide written notice to the named insured stating that the policy excludes coverage for providing transportation network services:</text> <level label="i"> <text>for a policy initially purchased on or after January 1, 2016, at the time of issuance; and</text> </level> <level label="ii"> <text>for a policy in force before January 1, 2016, at the time the policy first renews after January 1, 2016.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Nothing in this section or § 10–405 of the Public Utilities Article:</text> <level label="i"> <text>may be construed to require a personal motor vehicle insurance policy to provide primary or excess coverage; or</text> </level> <level label="ii"> <text>implies or requires that a personal motor vehicle insurance policy provide coverage while the vehicle operator is providing transportation network services.</text> </level> </level> <level label="2"> <text>Coverage under a motor vehicle insurance policy maintained by a transportation network company may not be dependent on a personal insurer that writes motor vehicle liability insurance in the State first denying a claim, nor may a personal motor vehicle insurance policy be required to first deny a claim.</text> </level> <level label="3"> <text>Nothing in this section or § 10–405 of the Public Utilities Article precludes an insurer that writes motor vehicle liability insurance in the State from providing coverage for an operator’s motor vehicle while the operator is providing transportation network services if the insurer elects to do so by contract or endorsement.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-517.1" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>Beginning July 1, 2017, and annually thereafter through July 1, 2021, the Commissioner shall make a determination whether, with regard to the required coverages under § 10–405(a) of the Public Utilities Article, there is a viable, affordable, and adequate market of authorized insurers in the State, including the Maryland Automobile Insurance Fund, available to provide the required coverages to the transportation network services industry.</text> </level> <level label="b"> <text>To the extent that the Commissioner makes an affirmative finding of availability, and in accordance with the provisions of Title 3, Subtitle 3 of this article, it is the intent of the General Assembly that required coverages be obtained from authorized insurers and the Maryland Automobile Insurance Fund.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-518" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>In this section, “volunteer driver” means an individual who provides driving services, including transportation of individuals or goods, without compensation other than for expenses to:</text> <level label="1"> <text>a charitable organization, as defined in § 6–101 of the Business Regulation Article, in the State; or</text> </level> <level label="2"> <text>a not–for–profit organization in the State that is exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code.</text> </level> </level> <level label="b"> <text>An insurer that issues, sells, or delivers a motor vehicle liability insurance policy in the State may not:</text> <level label="1"> <text>cancel the policy of a named insured or refuse to issue the policy to an applicant solely because the named insured or applicant is a volunteer driver; or</text> </level> <level label="2"> <text>impose a surcharge on or otherwise increase the rate for the policy solely because the named insured or applicant, a member of the named insured’s or applicant’s household, or an individual who customarily operates the named insured’s or applicant’s motor vehicle is a volunteer driver.</text> </level> </level> <level label="c"> <text>This section does not prohibit an insurer from canceling, refusing to renew, imposing a surcharge on, or otherwise increasing the rate for a motor vehicle liability insurance policy based on factors other than the status of a driver under the policy as a volunteer driver.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-519" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <text>Notwithstanding any other provision of law, an authorized motor vehicle insurer and the Maryland Automobile Insurance Fund may reinstate, without a lapse in coverage, a private passenger motor vehicle liability insurance policy that was canceled by the insurer or the Fund for nonpayment of premium on payment by the policyholder of:</text> <level label="1"> <text>all earned premiums owed to the insurer or the Fund; and</text> </level> <level label="2"> <text>any reasonable fee approved by the Commissioner under § 27–216(b)(5) of this article.</text> </level> </level> <level label="b"> <text>Before an authorized motor vehicle insurer or the Maryland Automobile Insurance Fund reinstates a policy under this section, the policyholder shall provide to the insurer or the Fund a written certification, in the form and manner specified by the insurer or the Fund, that no losses were incurred by the policyholder from the time and date the policy was canceled through the time and date the policy is reinstated.</text> </level> <level label="c"> <text>A reinstatement of a policy by an authorized motor vehicle insurer or the Maryland Automobile Insurance Fund under this section:</text> <level label="1"> <text>shall be implemented in accordance with written underwriting guidelines adopted by the insurer or the Fund; and</text> </level> <level label="2"> <text>is subject to the requirements of § 27–501(a) of this article in the same manner as a cancellation, a refusal to underwrite, or a refusal to renew a risk or class of risk.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-520" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="5" subtitle_name="Motor Vehicle Insurance -- Primary Coverage"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Car sharing delivery period” means the period of time during which a shared motor vehicle is being delivered to the location of the car sharing start time, as documented by the shared vehicle owner under a peer–to–peer car sharing program agreement.</text> </level> <level label="3"> <text>“Car sharing period” means the period of time that commences with the car sharing delivery period and ends at the car sharing termination time.</text> </level> <level label="4"> <text>“Car sharing start time” means the time when a shared motor vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of a shared motor vehicle is scheduled to begin as documented in the records of a peer–to–peer car sharing program.</text> </level> <level label="5"> <text>“Car sharing termination time” means:</text> <level label="i"> <text>the time when the shared motor vehicle is returned to the location designated by the shared vehicle owner through a peer–to–peer car sharing program; and</text> </level> <level label="ii"> <text>the earliest of the following occurs:</text> <level label="1"> <text>the expiration of the agreed period of time established for the use of the shared motor vehicle;</text> </level> <level label="2"> <text>the intent to terminate the use of the shared motor vehicle is verifiably communicated to the peer–to–peer car sharing program; or</text> </level> <level label="3"> <text>the shared vehicle owner, or the shared vehicle owner’s authorized designee, takes possession and control of the shared motor vehicle.</text> </level> </level> </level> <level label="6"> <text>“Intentional or fraudulent material misrepresentation” means an affirmative statement or an omission by a shared vehicle owner that misrepresents material facts about the shared vehicle owner or the shared motor vehicle.</text> </level> <level label="7"> <text>“Motor vehicle” has the meaning stated in § 11–135 of the Transportation Article.</text> </level> <level label="8"> <text>“Peer–to–peer car sharing” means the authorized use of a motor vehicle by an individual other than the vehicle’s owner through a peer–to–peer car sharing program.</text> </level> <level label="9"> <text>“Peer–to–peer car sharing program” means a platform that is in the business of connecting vehicle owners with drivers to enable the sharing of motor vehicles for financial consideration.</text> </level> <level label="10"> <text>“Peer–to–peer car sharing program agreement” means the written terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer–to–peer car sharing program under the provisions of this section and Title 18.5 of the Transportation Article.</text> </level> <level label="11"> <text>“Shared motor vehicle” means a motor vehicle that is available for sharing through a peer–to–peer car sharing program.</text> </level> <level label="12"> <text>“Shared vehicle driver” means an individual who has:</text> <level label="i"> <text>reserved the use of a shared motor vehicle through a peer–to–peer car sharing program; and</text> </level> <level label="ii"> <text>been authorized to drive the shared motor vehicle by the peer–to–peer car sharing program.</text> </level> </level> <level label="13"> <text>“Shared vehicle owner” means the registered owner of a motor vehicle made available for sharing to shared vehicle drivers through a peer–to–peer car sharing program.</text> </level> </level> <level label="b"> <level label="1"> <text>Solely on the basis that a motor vehicle is shared through a peer–to–peer car sharing program:</text> <level label="i"> <text>a peer–to–peer car sharing program may not be considered to have rented the vehicle under Title 18, Subtitle 1 of the Transportation Article;</text> </level> <level label="ii"> <text>the shared vehicle owner may not be considered to have rented a vehicle under Title 18, Subtitle 1 of the Transportation Article; and</text> </level> <level label="iii"> <text>a peer–to–peer car sharing program may not be considered to be:</text> <level label="1"> <text>a rental vehicle company under § 18–108 of the Transportation Article; or</text> </level> <level label="2"> <text>a motor vehicle rental company under Title 10, Subtitle 6 of this article.</text> </level> </level> </level> <level label="2"> <text>Subject to subsection (e)(1) of this section, the use of a shared motor vehicle through a peer–to–peer car sharing program does not constitute a commercial use solely on the basis that the motor vehicle is available for sharing or used through a peer–to–peer car sharing program.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, a peer–to–peer car sharing program shall assume the liability of a shared vehicle owner for any bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount stated in the peer–to–peer car sharing program agreement, which amount may not be less than the minimum amount of security required under § 17–103 of the Transportation Article.</text> </level> <level label="ii"> <text>Except for the minimum security required under § 17–103 of the Transportation Article for any injured person who did not make the intentional or fraudulent misrepresentation, the assumption of liability under paragraph (1) of this subsection does not apply if the shared vehicle owner made an intentional or fraudulent material misrepresentation to the peer–to–peer car sharing program before the car sharing period in which the loss occurred.</text> </level> </level> <level label="2"> <text>Paragraph (1) of this subsection does not limit:</text> <level label="i"> <text>the liability of the peer–to–peer car sharing program for any act or omission of the peer–to–peer car sharing program itself that results in injury to any person as a result of the use of a shared motor vehicle through a peer–to–peer car sharing program; or</text> </level> <level label="ii"> <text>the ability of the peer–to–peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer–to–peer car sharing program resulting from a breach of the terms and conditions of the peer–to–peer car sharing program agreement.</text> </level> </level> <level label="3"> <text>Each peer–to–peer car sharing program agreement made with respect to a car sharing arrangement in the State shall disclose to the shared vehicle owner and the shared vehicle driver:</text> <level label="i"> <text>any right of the peer–to–peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer–to–peer car sharing program resulting from a breach of the terms and conditions of the peer–to–peer car sharing program agreement;</text> </level> <level label="ii"> <text>that a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared motor vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer–to–peer car sharing program under item (i) of this paragraph;</text> </level> <level label="iii"> <text>that the peer–to–peer car sharing program’s insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared motor vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner should contact the shared vehicle driver’s or the shared vehicle owner’s insurer about insurance coverage; and</text> </level> <level label="iv"> <text>the daily rate, fees, any insurance costs, and any protection package costs that are charged to the shared vehicle owner or the shared vehicle driver.</text> </level> </level> <level label="4"> <text>At the time when a vehicle owner registers as a shared vehicle owner on a peer–to–peer car sharing program and prior to the time when the shared vehicle owner makes a shared motor vehicle available for car sharing on the peer–to–peer car sharing program, the peer–to–peer car sharing program shall notify the shared vehicle owner that, if the shared motor vehicle has a lien against it, the use of the shared motor vehicle through a peer–to–peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.</text> </level> </level> <level label="d"> <level label="1"> <text>A peer–to–peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that:</text> <level label="i"> <text>provides coverage in amounts not less than those required under § 17–103 of the Transportation Article; and</text> </level> <level label="ii"> <level label="1"> <text>recognizes that the vehicle insured under the policy is made available and used through a peer–to–peer car sharing program;</text> <text>or</text> </level> <level label="2"> <text>does not exclude the use of the shared motor vehicle by a shared vehicle driver.</text> </level> </level> </level> <level label="2"> <text>The insurance described under paragraph (1) of this subsection may be satisfied by motor vehicle liability insurance maintained by:</text> <level label="i"> <text>a shared vehicle owner;</text> </level> <level label="ii"> <text>a shared vehicle driver;</text> </level> <level label="iii"> <text>a peer–to–peer car sharing program; or</text> </level> <level label="iv"> <text>any combination of a shared vehicle owner, a shared vehicle driver, and a peer–to–peer car sharing program.</text> </level> </level> <level label="3"> <level label="i"> <text>In this paragraph, “replacement vehicle” means a shared motor vehicle that is used in a peer–to–peer car sharing program while a motor vehicle owned by the shared motor vehicle driver is not in use because of loss, as “loss” is defined in that individual’s applicable private passenger automobile insurance policy, or because of breakdown, repair, service, or damage.</text> </level> <level label="ii"> <text>Notwithstanding paragraph (2)(ii) of this subsection, the Maryland Automobile Insurance Fund may not be required to provide coverage to a shared vehicle driver for use of a shared vehicle that is not a replacement vehicle.</text> </level> </level> <level label="4"> <level label="i"> <text>A peer–to–peer car sharing program shall have an insurable interest in a shared motor vehicle during the car sharing period.</text> </level> <level label="ii"> <text>A peer–to–peer car sharing program may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage in the amount of, in excess of, or optional to the minimum amount of coverage required to be provided under paragraph (1) of this subsection, including coverage for:</text> <level label="1"> <text>liabilities assumed by the peer–to–peer car sharing program under a peer–to–peer car sharing program agreement;</text> </level> <level label="2"> <text>any liability of the shared vehicle owner;</text> </level> <level label="3"> <text>damage or loss to the shared motor vehicle; and</text> </level> <level label="4"> <text>any liability of the shared vehicle driver.</text> </level> </level> <level label="iii"> <text>An offer by a peer–to–peer car sharing program to provide coverage to a shared vehicle driver in the amount of, in excess of, or optional to the minimum amount of coverage required to be provided under paragraph (1) of this subsection, whether on a stand–alone basis or as part of a financial protection package, shall be considered the sale or offer of insurance under Title 10, Subtitle 6A of this article.</text> </level> </level> <level label="5"> <text>The insurance described under paragraph (1) of this subsection or authorized under paragraph (4) of this subsection shall:</text> <level label="i"> <text>as to coverage of the shared vehicle driver, pay claims on a first dollar basis; and</text> </level> <level label="ii"> <text>be issued by:</text> <level label="1"> <text>an insurer authorized to do business in the State; or</text> </level> <level label="2"> <text>solely with respect to insurance maintained by a peer–to–peer car sharing program under paragraph (4) of this subsection, an eligible surplus lines insurer:</text> </level> <level label="A"> <text>in accordance with the requirements of Title 3, Subtitle 3 of this article; and</text> </level> <level label="B"> <text>having an A.M. Best financial strength rating of A– or better.</text> </level> </level> </level> <level label="6"> <level label="i"> <text>The insurance described under paragraph (1) of this subsection shall, as to coverage of the shared vehicle owner, pay claims on a first dollar basis.</text> </level> <level label="ii"> <text>This paragraph may not apply to the terms and conditions under the insurance policy applicable to the peer–to–peer car sharing program.</text> </level> </level> <level label="7"> <text>Consumer complaints concerning claims against a surplus lines policy issued in connection with, and incidental to, a peer–to–peer car sharing program agreement are subject to the Commissioner’s authority under § 27–303 of this article.</text> </level> <level label="8"> <text>If the insurance maintained by a shared vehicle driver has lapsed, or is otherwise not in force, the peer–to–peer car sharing program’s insurance coverage required under paragraph (1) of this subsection shall be primary.</text> </level> <level label="9"> <text>If a claim that arises out of an occurrence during the car sharing period occurred in another state with minimum financial responsibility limits higher than those required under § 17–103 of the Transportation Article, the coverage required under paragraph (1) of this subsection shall be in an amount up to the minimum coverage amount required in the state in which the claim occurred.</text> </level> </level> <level label="e"> <level label="1"> <text>An authorized insurer that writes motor vehicle liability insurance in the State and the Maryland Automobile Insurance Fund may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner’s personal motor vehicle liability insurance policy for any loss or injury that occurs during the car sharing period.</text> </level> <level label="2"> <text>A motor vehicle insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy shall have the right to seek contribution against the motor vehicle insurer of the peer–to–peer car sharing program if the claim is:</text> <level label="i"> <text>made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period; and</text> </level> <level label="ii"> <text>excluded under the terms of its policy.</text> </level> </level> <level label="3"> <text>Nothing in this section invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use before October 1, 2018, that excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.</text> </level> <level label="4"> <text>The right to exclude any and all coverage and the duty to defend under paragraph (1) of this subsection applies to any coverage included in a motor vehicle liability insurance policy, including:</text> <level label="i"> <text>liability coverage for bodily injury and property damage;</text> </level> <level label="ii"> <text>uninsured and underinsured motorist coverage;</text> </level> <level label="iii"> <text>medical payments coverage;</text> </level> <level label="iv"> <text>personal injury protection coverage;</text> </level> <level label="v"> <text>comprehensive physical damage coverage; and</text> </level> <level label="vi"> <text>collision physical damage coverage.</text> </level> </level> </level> <level label="f"> <text>This section does not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including an insurance policy in use or approved for use that excludes coverage for motor vehicles made available for rent, sharing, or hire or for a business use.</text> </level> <level label="g"> <level label="1"> <text>Coverage under a motor vehicle liability insurance policy maintained by a peer–to–peer car sharing program may not be dependent on the denial of a claim by another motor vehicle insurer.</text> </level> <level label="2"> <text>A motor vehicle insurer of a personal motor vehicle liability insurance policy may not be required to first deny a claim.</text> </level> </level> <level label="h"> <text>A peer–to–peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability consistent with 49 U.S.C. § 30106 and under any state or local law that imposes liability solely based on vehicle ownership.</text> </level> <level label="i"> <text>In a claim coverage investigation following a vehicular accident, a peer–to–peer car sharing program shall cooperate to facilitate the exchange of information with directly involved parties and any motor vehicle insurer of a shared vehicle owner regarding the vehicle’s use in a peer–to–peer car sharing program.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-601" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="6" subtitle_name="Insurance Pools"> <text>The following may pool together to purchase property insurance or casualty insurance:</text> <level label="1"> <text>associations, corporations, institutions, organizations, or societies that are exempt from taxation under § 501(c)(3) of the Internal Revenue Code;</text> </level> <level label="2"> <text>clubs that are organized and operated exclusively for recreational purposes and are exempt from taxation under § 501(c)(7) of the Internal Revenue Code;</text> </level> <level label="3"> <text>nonprofit associations, corporations, or other organizations that are comprised of residents of a community and are operated exclusively for the promotion of social welfare and general neighborhood improvement; and</text> </level> <level label="4"> <text>nonprofit organizations that are comprised of property owners in a subdivision or group of subdivisions and whose purpose is to represent the mutual interests of the property owners regarding the construction, protection, and maintenance of commonly owned or used property and improvements.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-602" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="6" subtitle_name="Insurance Pools"> <level label="a"> <text>In this section, “public entity” means:</text> <level label="1"> <text>a political subdivision of the State;</text> </level> <level label="2"> <text>a unit of the State or a local government;</text> </level> <level label="3"> <text>a nonprofit or nonstock corporation that:</text> <level label="i"> <text>receives 50% or more of its annual operating budget from the State or a local government; and</text> </level> <level label="ii"> <text>is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; or</text> </level> </level> <level label="4"> <text>a Resilience Authority as defined in § 22–101 of the Local Government Article.</text> </level> </level> <level label="b"> <text>Public entities may pool together to purchase casualty insurance, property insurance, or health insurance or to self–insure against casualty, property, or health risks.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-603" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="6" subtitle_name="Insurance Pools"> <level label="a"> <text>In this section, “local government” means a county or municipal corporation in the State.</text> </level> <level label="b"> <text>A local government:</text> <level label="1"> <text>may enter into an agreement to fund an insurance pool established under this subtitle; and</text> </level> <level label="2"> <text>except as otherwise provided in this section, may determine by resolution the provisions, terms, conditions, and duration of the agreement.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a payment obligation in an agreement authorized by this section:</text> <level label="i"> <text>shall be a general obligation of the local government to which its full faith and credit and unlimited taxing power is pledged; and</text> </level> <level label="ii"> <text>may not be subject to annual appropriation by the local government.</text> </level> </level> <level label="2"> <text>If a provision of the Maryland Constitution limits a local government in undertaking a payment obligation described in paragraph (1) of this subsection, or requires a local government to comply with certain procedures before undertaking a payment obligation described in paragraph (1) of this subsection, the local government may provide that the payment obligation is:</text> <level label="i"> <text>a limited obligation of the local government repayable from assets and revenues as provided in the agreement; or</text> </level> <level label="ii"> <text>subject to annual appropriation by the local government.</text> </level> </level> </level> <level label="d"> <text>Subject to the limitations of this section, a local government may undertake a payment obligation in an agreement authorized by this section:</text> <level label="1"> <text>without regard to any limitations contained in its charter or other applicable public local or public general law that otherwise would apply; and</text> </level> <level label="2"> <text>without complying with any procedures contained in its charter or other applicable public local or public general law that otherwise would be required.</text> </level> </level> <level label="e"> <text>On the date a local government executes an agreement authorized by this section, the aggregate outstanding and unpaid principal amount that the local government is obligated to pay under the agreement may not exceed 0.2% of the local government’s assessable base for real property tax purposes for the fiscal year in which the agreement is executed, as determined by the State Department of Assessments and Taxation.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-701" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Affected property” means:</text> <level label="i"> <level label="1"> <text>a residential rental property constructed before 1950 that contains not more than one rental dwelling unit; or</text> </level> <level label="2"> <text>a residential rental property that contains not more than one rental dwelling unit for which the owner makes an election under § 6–803(a)(2) of the Environment Article; or</text> </level> </level> <level label="ii"> <text>an individual rental dwelling unit within:</text> <level label="1"> <text>a residential rental property constructed before 1950 that contains more than one rental dwelling unit; or</text> </level> <level label="2"> <text>a residential rental property that contains more than one rental dwelling unit for which the owner makes an election under § 6–803(a)(2) of the Environment Article.</text> </level> </level> </level> <level label="2"> <text>“Affected property” does not include property exempted under § 6–803(b) of the Environment Article.</text> </level> </level> <level label="c"> <text>“Owner” has the meaning stated in § 6–801(o) of the Environment Article.</text> </level> <level label="d"> <text>“Rental dwelling unit” has the meaning stated in § 6–801(u) of the Environment Article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-702" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <text>This subtitle applies only to authorized insurers that deliver or issue for delivery in the State third party bodily injury liability insurance under:</text> <level label="1"> <text>homeowner’s coverage;</text> </level> <level label="2"> <text>owners’, landlords’, and tenants’ coverage; or</text> </level> <level label="3"> <text>any other premises liability coverage.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-703" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <level label="a"> <text>The Commissioner may adopt regulations to carry out this subtitle.</text> </level> <level label="b"> <text>The Commissioner shall review policy forms and endorsements to implement and enforce compliance with this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-704" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <level label="a"> <text>This section applies only to lead hazard coverage for affected properties.</text> </level> <level label="b"> <text>This section does not affect coverage for property damage or any other form of coverage provided in a policy or insurance contract for an affected property.</text> </level> <level label="c"> <text>Notwithstanding subsection (g) of this section, whenever an authorized insurer issues or renews a policy for an affected property, the authorized insurer may include in the policy a lead hazard coverage exclusion.</text> </level> <level label="d"> <text>If a policy issued or renewed by an authorized insurer on or after February 24, 1996, for an affected property contains a lead hazard coverage exclusion, the authorized insurer shall waive the exclusion to the extent of a qualified offer made or to be made under Title 6, Subtitle 8, Part V of the Environment Article:</text> <level label="1"> <text>if the owner of the affected property complies with Title 6, Subtitle 8, Part III of the Environment Article;</text> </level> <level label="2"> <text>if at the election of the insured, and whether or not a change in occupancy has occurred, the affected property:</text> <level label="i"> <text>passes the test for lead-contaminated dust under § 6-816 of the Environment Article; or</text> </level> <level label="ii"> <text>has undergone the lead hazard reduction treatments and complies with the risk reduction standard under § 6-815(a)(2) of the Environment Article; and</text> </level> </level> <level label="3"> <text>if the insured submits to the authorized insurer a current verified report completed by an accredited inspector under § 6-818 of the Environment Article certifying that the affected property complies with the standards set forth in item (2) of this subsection.</text> </level> </level> <level label="e"> <text>Instead of waiving a lead hazard coverage exclusion as required by subsection (d) of this section, after receiving approval from the Commissioner, an authorized insurer may offer an alternative form of coverage for a qualified offer made or to be made under Title 6, Subtitle 8, Part V of the Environment Article.</text> </level> <level label="f"> <text>An authorized insurer may exclude lead hazard coverage for an affected property in excess of the amount of a qualified offer made or to be made under Title 6, Subtitle 8, Part V of the Environment Article.</text> </level> <level label="g"> <level label="1"> <text>An authorized insurer may cancel or nonrenew lead hazard coverage or reimpose a lead hazard coverage exclusion in a policy for an affected property only if:</text> <level label="i"> <text>the insured fails to:</text> <level label="1"> <text>pay the applicable premium;</text> </level> <level label="2"> <text>provide the authorized insurer or the authorized insurer’s designee reasonable access to the affected property to inspect for the presence or condition of lead;</text> </level> <level label="3"> <text>comply with the terms or conditions of the policy; or</text> </level> <level label="4"> <text>perform lead hazard reduction treatments; or</text> </level> </level> <level label="ii"> <text>the affected property fails to comply or maintain compliance with the risk reduction standard under § 6-815(a)(2) of the Environment Article.</text> </level> </level> <level label="2"> <level label="i"> <text>An authorized insurer may cancel or nonrenew lead hazard coverage or reimpose a lead hazard coverage exclusion under paragraph (1)(i)4 or (ii) of this subsection only if the authorized insurer:</text> <level label="1"> <text>mails written notice to the insured that the authorized insurer intends to cancel or nonrenew the coverage or to reimpose the exclusion; and</text> </level> <level label="2"> <text>provides an opportunity to the insured to correct the violation within 30 days after the notice is mailed.</text> </level> </level> <level label="ii"> <text>Coverage is automatically reinstated if the violation is corrected within 30 days after the notice is mailed.</text> </level> <level label="iii"> <text>Within 45 days after mailing a notice of cancellation or nonrenewal of coverage or reimposition of an exclusion under this paragraph, the authorized insurer shall send a copy of the notice to the Secretary of the Environment or a designee of the Secretary, and include the results of any inspection of the affected property.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-705" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <text>An authorized insurer that provides lead hazard coverage for an affected property under this subtitle shall offer the coverage without a deductible, and may also offer the coverage with a deductible.</text> </section> <section article="gin" article_name="Insurance" number="19-706" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="7" subtitle_name="Lead Hazard Coverage for Rental Property"> <level label="a"> <text>Subject to reasonable notice provisions contained in a policy or insurance contract, the notice provided to an insured under § 6-828(b)(1) of the Environment Article that a person at risk has an elevated blood lead level shall be deemed a claim against the insured for the purpose of triggering the authorized insurer’s duty to respond on behalf of the insured in accordance with Title 6, Subtitle 8, Part V of the Environment Article.</text> </level> <level label="b"> <text>Notwithstanding § 6-831 of the Environment Article and §§ 19-704 and 19-705 of this subtitle, an authorized insurer is not liable for a qualified offer made under Title 6, Subtitle 8, Part V of the Environment Article if the qualified offer was made in violation of the terms of the policy or insurance contract.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-901" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="9" subtitle_name="Portable Electronics Insurance"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Covered customer” has the meaning stated in § 10–701 of this article.</text> </level> <level label="c"> <text>“Customer” has the meaning stated in § 10–701 of this article.</text> </level> <level label="d"> <text>“Portable electronics” has the meaning stated in § 10–701 of this article.</text> </level> <level label="e"> <text>“Portable electronics insurance” has the meaning stated in § 10–701 of this article.</text> </level> <level label="f"> <text>“Vendor” has the meaning stated in § 10–701 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-902" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="9" subtitle_name="Portable Electronics Insurance"> <level label="a"> <text>Portable electronics insurance may be offered on a month–to–month or other periodic basis as a group or master commercial inland marine policy issued to a vendor under which individual customers may elect to purchase coverage under the policy.</text> </level> <level label="b"> <text>Eligibility and underwriting standards for customers purchasing coverage under a policy of portable electronics insurance shall be established for each portable electronics insurance policy.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-903" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="9" subtitle_name="Portable Electronics Insurance"> <level label="a"> <text>Notwithstanding any other provision of law and except as otherwise provided in this section, an insurer may not terminate or otherwise change the terms and conditions of a policy of portable electronics insurance unless the insurer provides the policyholder and covered customers with at least 60 days’ notice.</text> </level> <level label="b"> <text>If the insurer changes the terms and conditions of a policy of portable electronics insurance in accordance with subsection (a) of this section, the insurer shall:</text> <level label="1"> <text>provide the policyholder with a revised policy or endorsement; and</text> </level> <level label="2"> <text>provide each covered customer with:</text> <level label="i"> <text>a revised certificate, endorsement, updated brochure, or other evidence that indicates that a change in the terms and conditions of the policy has occurred; and</text> </level> <level label="ii"> <text>a summary of material changes.</text> </level> </level> </level> <level label="c"> <text>An insurer may terminate coverage of a covered customer under a policy of portable electronics insurance:</text> <level label="1"> <text>after 45 days’ notice for discovery of fraud or material misrepresentation in obtaining coverage or in the presentation of a claim under the policy; or</text> </level> <level label="2"> <text>after 10 days’ notice for nonpayment of premium.</text> </level> </level> <level label="d"> <level label="1"> <text>An insurer may automatically terminate coverage of a covered customer under a policy of portable electronics insurance:</text> <level label="i"> <text>if the covered customer ceases to have active service related to the use of portable electronics with the vendor; or</text> </level> <level label="ii"> <text>if:</text> <level label="1"> <text>the covered customer exhausts the aggregate limit of liability, if any, under the terms of the policy of portable electronics insurance; and</text> </level> <level label="2"> <text>the insurer sends notice of termination to the covered customer within 15 business days after exhaustion of the limit, subject to paragraph (2) of this subsection.</text> </level> </level> </level> <level label="2"> <text>If the insurer does not send timely notice in accordance with paragraph (1)(ii) of this subsection, coverage shall continue under the policy of portable electronics insurance notwithstanding the aggregate limit of liability until the insurer sends notice of termination to the covered customer.</text> </level> </level> <level label="e"> <text>Notwithstanding subsection (d)(1)(ii) of this section, on request of a covered customer, the covered customer shall be eligible for reinstatement of coverage not more than 12 months after the date of exhaustion of the coverage limit in accordance with the terms of the policy and subject to the enrollment criteria then applicable to prospective customers generally.</text> </level> <level label="f"> <text>If a vendor terminates a policy of portable electronics insurance, the vendor shall mail or deliver, at least 45 days before termination, written notice to each covered customer that advises the covered customer of the termination of the policy and the effective date of termination.</text> </level> <level label="g"> <level label="1"> <text>An insurer is not required to give notice of termination to a covered customer if the insurer has been advised by either the vendor or another insurer that substantially similar coverage under a policy of portable electronics insurance has been obtained from another insurer without lapse of coverage.</text> </level> <level label="2"> <text>A vendor is not required to give notice of termination to a covered customer if substantially similar coverage under a policy of portable electronics insurance has been obtained from another insurer without lapse of coverage.</text> </level> </level> <level label="h"> <level label="1"> <text>Whenever notice is required in accordance with this section, the notice shall be in writing and sent by mail or electronic means as specified in this subsection.</text> </level> <level label="2"> <level label="i"> <text>Unless notice by electronic means is authorized under paragraph (3) or (4) of this subsection, notice under this section shall be provided by mail in accordance with subparagraphs (ii) and (iii) of this paragraph.</text> </level> <level label="ii"> <text>Notice shall be mailed to the vendor at the vendor’s last known mailing address on file with the insurer.</text> </level> <level label="iii"> <text>Notice shall be mailed to a covered customer at the covered customer’s last known mailing address on file with the insurer or vendor.</text> </level> <level label="iv"> <text>The insurer or vendor responsible for mailing the notice under this section shall maintain proof of mailing.</text> </level> </level> <level label="3"> <text>An insurer responsible for providing notice to a covered customer under this section may provide notice by electronic means if:</text> <level label="i"> <text>the covered customer has provided an electronic mail address to the insurer or vendor to receive notices about coverage;</text> </level> <level label="ii"> <text>notice is sent to the electronic mail address provided by the covered customer; and</text> </level> <level label="iii"> <text>the insurer or vendor maintains proof that the notice was sent to the covered customer at the covered customer’s electronic mail address.</text> </level> </level> <level label="4"> <text>An insurer responsible for providing notice to a vendor under this section may provide notice by electronic means if:</text> <level label="i"> <text>the vendor has provided an electronic mail address to the insurer at which the vendor consents to receive notices about the policy;</text> </level> <level label="ii"> <text>notice is sent to the electronic mail address provided by the vendor; and</text> </level> <level label="iii"> <text>the insurer maintains proof that the notice was sent to the vendor at the vendor’s electronic mail address.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-1001" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="10" subtitle_name="Travel Insurance"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Affiliated insurer” means:</text> <level label="1"> <text>an insurer in the same corporate system as the insurer’s parent; or</text> </level> <level label="2"> <text>a member organization having common ownership, control, operation, or management with the insurer.</text> </level> </level> <level label="c"> <text>“Aggregator site” means a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.</text> </level> <level label="d"> <text>“Blanket travel insurance” means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group.</text> </level> <level label="e"> <text>“Cancellation fee waiver” means a noninsurance contractual agreement between a person engaged in the business of arranging or supplying travel and the person’s customer to waive some or all of a nonrefundable cancellation fee provision of the supplier’s underlying travel contract, with or without regard to the reason for cancellation or form of reimbursement.</text> </level> <level label="f"> <text>“Eligible group” means two or more persons who are engaged in a common enterprise or who have an economic, educational, or social affinity or relationship, including:</text> <level label="1"> <text>an entity engaged in the business of providing travel or travel services in which, with regard to any particular travel or type of travel or travelers, all members or customers of the group have common exposure to risk attendant to that travel, including:</text> <level label="i"> <text>a tour operator;</text> </level> <level label="ii"> <text>a lodging provider;</text> </level> <level label="iii"> <text>a vacation property owner;</text> </level> <level label="iv"> <text>a hotel or resort;</text> </level> <level label="v"> <text>a travel club;</text> </level> <level label="vi"> <text>a travel agency;</text> </level> <level label="vii"> <text>a property manager;</text> </level> <level label="viii"> <text>a cultural exchange program;</text> </level> <level label="ix"> <text>a common carrier; and</text> </level> <level label="x"> <text>the operator, owner, or lessor of a means of transportation of passengers, including:</text> <level label="1"> <text>an airline;</text> </level> <level label="2"> <text>a cruise line;</text> </level> <level label="3"> <text>a railroad;</text> </level> <level label="4"> <text>a steamship company; and</text> </level> <level label="5"> <text>a public bus carrier;</text> </level> </level> </level> <level label="2"> <text>a college, school, or any other institution of learning providing travel insurance coverage for students, teachers, employees, or volunteers;</text> </level> <level label="3"> <text>an employer providing travel insurance coverage for employees, volunteers, contractors, boards of directors, or dependents, or guests of those persons;</text> </level> <level label="4"> <text>a sports team, camp, or sponsor of a sports team or camp providing travel insurance coverage for participants, members, campers, employees, officials, supervisors, or volunteers;</text> </level> <level label="5"> <text>a religious, charitable, recreational, educational, or civic organization or branch of the religious, charitable, recreational, educational, or civic organization providing travel insurance coverage for members, participants, or volunteers;</text> </level> <level label="6"> <text>a financial institution or financial institution vendor, or parent holding company, trustee, or agent of, or designated by, a financial institution or financial institution vendor, providing travel insurance coverage for account holders, credit card holders, debtors, guarantors, or purchasers;</text> </level> <level label="7"> <text>an incorporated or unincorporated association, including a labor union, that:</text> <level label="i"> <text>has a common interest, constitution, and bylaws;</text> </level> <level label="ii"> <text>is organized and maintained in good faith for purposes other than obtaining insurance for members or participants of the association; and</text> </level> <level label="iii"> <text>provides travel insurance coverage for members of the association;</text> </level> </level> <level label="8"> <text>a trust or the trustees of a fund, subject to the Commissioner’s authorizing the use of a trust and the State’s premium tax provisions under § 6–102 of this article:</text> <level label="i"> <text>established, created, or maintained for the benefit of members, employees, or customers of an association described under item (7) of this subsection; and</text> </level> <level label="ii"> <text>providing travel insurance coverage for members, employees, or customers of the association;</text> </level> </level> <level label="9"> <text>an entertainment production company providing travel insurance coverage for participants, volunteers, audience members, contestants, or workers;</text> </level> <level label="10"> <text>a volunteer fire department, an ambulance, a rescue, a police, a court, or any other volunteer agency having jurisdiction as a first aid or civil defense group and providing travel insurance coverage for members, participants, or volunteers;</text> </level> <level label="11"> <text>a preschool, a day care institution for children or adults, or a senior citizen club providing travel insurance coverage for attendees or participants;</text> </level> <level label="12"> <text>an automobile or truck rental or leasing company:</text> <level label="i"> <text>providing travel insurance coverage for individuals who may become renters, lessees, or passengers defined by the travel status of the individuals on the rented or leased vehicles; and</text> </level> <level label="ii"> <text>if the common carrier, operator, owner, or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder or certificate holder of the travel insurance policy; and</text> </level> </level> <level label="13"> <text>any other group for which the Commissioner determines that:</text> <level label="i"> <text>the members of the group are engaged in a common enterprise or have an economic, educational, or social affinity or relationship; and</text> </level> <level label="ii"> <text>the issuance of the policy would not be contrary to the best interests of the public.</text> </level> </level> </level> <level label="g"> <text>“Fulfillment material” means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan’s assistance and coverage details, including access to the policy or certificate of coverage, as applicable.</text> </level> <level label="h"> <text>“Group travel insurance” means travel insurance that provides coverage for certificate holders of an eligible group under a travel insurance policy issued to a policyholder.</text> </level> <level label="i"> <text>“Limited lines travel insurance producer” has the meaning stated in § 10–101 of this article.</text> </level> <level label="j"> <text>“Offer and disseminate” has the meaning stated in § 10–101 of this article.</text> </level> <level label="k"> <level label="1"> <text>“Travel assistance services” means noninsurance services that do not result in any transfer or shifting of risk that would constitute the business of insurance.</text> </level> <level label="2"> <text>“Travel assistance services” includes:</text> <level label="i"> <text>a security advisory service;</text> </level> <level label="ii"> <text>a destination information service;</text> </level> <level label="iii"> <text>a vaccination and immunization information service;</text> </level> <level label="iv"> <text>a travel reservation service;</text> </level> <level label="v"> <text>an entertainment service;</text> </level> <level label="vi"> <text>an activity and event planning service;</text> </level> <level label="vii"> <text>a translation assistance service;</text> </level> <level label="viii"> <text>an emergency messaging service;</text> </level> <level label="ix"> <text>an international legal and medical referral service;</text> </level> <level label="x"> <text>a medical case monitoring service;</text> </level> <level label="xi"> <text>coordination of transportation arrangements;</text> </level> <level label="xii"> <text>emergency cash transfer assistance;</text> </level> <level label="xiii"> <text>medical prescription replacement assistance;</text> </level> <level label="xiv"> <text>passport and travel document replacement assistance;</text> </level> <level label="xv"> <text>lost luggage assistance;</text> </level> <level label="xvi"> <text>a concierge service; and</text> </level> <level label="xvii"> <text>any other services that are furnished in connection with planned travel.</text> </level> </level> </level> <level label="l"> <text>“Travel insurance” has the meaning stated in § 10–101 of this article.</text> </level> <level label="m"> <text>“Travel protection plan” means a plan that provides, in addition to travel insurance:</text> <level label="1"> <text>travel assistance services; or</text> </level> <level label="2"> <text>a cancellation fee waiver.</text> </level> </level> <level label="n"> <text>“Travel retailer” has the meaning stated in § 10–101 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1002" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="10" subtitle_name="Travel Insurance"> <level label="a"> <text>The purpose of this subtitle is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in the State.</text> </level> <level label="b"> <level label="1"> <text>This subtitle applies to travel insurance under policies and certificates delivered or issued for delivery in the State.</text> </level> <level label="2"> <level label="i"> <text>Except as otherwise expressly provided in this subtitle, this subtitle does not apply to a cancellation fee waiver or travel assistance services.</text> </level> <level label="ii"> <text>The following may not be construed to be insurance, as defined in § 1–101 of this article:</text> <level label="1"> <text>a cancellation fee waiver; or</text> </level> <level label="2"> <text>travel assistance services.</text> </level> </level> </level> </level> <level label="c"> <text>All other applicable provisions of this article apply to travel insurance, except that specific provisions of this subtitle supersede any general provisions of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1003" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="10" subtitle_name="Travel Insurance"> <text>Notwithstanding § 27–214 of this article, travel protection plans may be offered for one price for the combined features that the travel protection plan offers in the State if:</text> <level label="1"> <text>the travel protection plan:</text> <level label="i"> <text>clearly discloses to the consumer at or before the time of purchase that the plan includes travel insurance and, as applicable, travel assistance services or a cancellation fee waiver; and</text> </level> <level label="ii"> <text>provides information and an opportunity at or before the time of purchase for the consumer to obtain additional information regarding the features and pricing of the travel insurance, travel assistance services, and a cancellation fee waiver, as applicable; and</text> </level> </level> <level label="2"> <text>the fulfillment material for the travel protection plan:</text> <level label="i"> <text>describes and delineates the travel insurance, travel assistance services, and cancellation fee waiver in the travel protection plan;</text> </level> <level label="ii"> <text>includes the travel insurance disclosures required under State law; and</text> </level> <level label="iii"> <text>includes the contact information for the person providing the travel assistance services or cancellation fee waiver, as applicable.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-1004" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="10" subtitle_name="Travel Insurance"> <level label="a"> <text>Except as otherwise provided in this section, a person offering travel insurance to residents of the State is subject to Title 27 of this article.</text> </level> <level label="b"> <text>It is an unfair trade practice under Title 27 of this article for a person to offer or sell a travel insurance policy that could never result in payment of any claim for any insured under the policy.</text> </level> <level label="c"> <level label="1"> <text>Documents provided to a consumer before the purchase of travel insurance, including sales materials, advertising materials, and marketing materials, shall be consistent with the travel insurance policy itself, including forms, endorsements, policies, rate filings, and certificates of insurance.</text> </level> <level label="2"> <text>If a travel insurance policy or certificate contains a preexisting condition exclusion, information and an opportunity to learn more about the preexisting condition exclusion shall be provided any time before the time of purchase and in the travel protection plan’s fulfillment material.</text> </level> <level label="3"> <level label="i"> <text>An insurer shall provide a policyholder or certificate holder at least 10 days after the later of the date of purchase of a travel protection plan or the policyholder’s or certificate holder’s receipt, either by physical or electronic means, of the travel protection plan’s fulfillment material to review and, if desired, cancel the policy or certificate.</text> </level> <level label="ii"> <text>If the policyholder or certificate holder cancels the policy or certificate within the time period under subparagraph (i) of this paragraph, the insurer shall provide the policyholder or certificate holder a full refund of the travel protection plan price unless the insured has started the covered trip or filed a claim under the travel insurance coverage.</text> </level> </level> <level label="4"> <level label="i"> <text>The fulfillment material shall disclose whether the travel insurance is primary or secondary to other applicable coverage.</text> </level> <level label="ii"> <text>Travel insurance is not subject to coordination of benefits for health insurance coverage.</text> </level> </level> <level label="5"> <text>Subject to § 10–122 of this article, an action may not be deemed an unfair trade practice in violation of Title 27 of this article or other violation of law if:</text> <level label="i"> <text>travel insurance is marketed directly to a consumer through an insurer’s website or by another person through an aggregator site;</text> </level> <level label="ii"> <text>the insurer’s website or aggregator site provides an accurate summary or short description of travel insurance coverage; and</text> </level> <level label="iii"> <text>the consumer has access to the full provisions of the travel insurance policy through electronic means.</text> </level> </level> </level> <level label="d"> <text>A person offering or selling travel insurance or a travel protection plan may not offer or sell the travel insurance or travel protection plan on an individual or group basis by using a negative option or an opt out provision that requires a consumer to take an affirmative action to refuse coverage, including unchecking a box on an electronic form, when the consumer purchases a trip.</text> </level> <level label="e"> <text>It is not an unfair trade practice under Title 27 of this article for a person to include blanket travel insurance with the purchase of a trip if the blanket travel insurance is not marketed as free of charge.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1005" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="10" subtitle_name="Travel Insurance"> <text>The Commissioner may adopt regulations to carry out this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="19-1101" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Chronic condition” means a condition that can be treated or managed, but not cured.</text> </level> <level label="c"> <text>“Congenital anomaly or disorder” means a condition that is present from birth, whether inherited or caused by the environment, that may cause or contribute to illness or disease.</text> </level> <level label="d"> <text>“Hereditary disorder” means an abnormality that is genetically transmitted from parent to offspring and may cause illness or disease.</text> </level> <level label="e"> <level label="1"> <text>“Orthopedic condition” means a condition affecting the bones, skeletal muscle, cartilage, tendons, ligaments, or joints.</text> </level> <level label="2"> <text>“Orthopedic condition” includes elbow dysplasia, hip dysplasia, intervertebral disc degeneration, patellar luxation, and ruptured cranial cruciate ligaments.</text> </level> <level label="3"> <text>“Orthopedic condition” does not include:</text> <level label="i"> <text>cancer; or</text> </level> <level label="ii"> <text>a metabolic, hemopoietic, or autoimmune disease.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>“Pet insurance policy” means a property insurance policy that is sold by a pet insurer or pet insurance producer that provides coverage for accidents and illnesses of pets.</text> </level> <level label="2"> <text>“Pet insurance policy” includes a certificate or add–on coverage.</text> </level> </level> <level label="g"> <level label="1"> <text>“Preexisting condition” means a condition for which any of the following are true before the effective date of a pet insurance policy or during any waiting period:</text> <level label="i"> <text>a veterinary practitioner provided medical advice;</text> </level> <level label="ii"> <text>the pet received treatment; or</text> </level> <level label="iii"> <text>based on information from verifiable sources, the pet had signs or symptoms directly related to the condition for which a claim is being made.</text> </level> </level> <level label="2"> <text>“Preexisting condition” does not include, for a renewal of a pet insurance policy, a condition for which coverage was afforded on the previous policy.</text> </level> </level> <level label="h"> <text>“Renewal” means the issuance and delivery at the end of a pet insurance policy period of a policy that:</text> <level label="1"> <text>supersedes the policy previously issued and delivered by the same pet insurer or affiliated pet insurer; and</text> </level> <level label="2"> <text>provides types and limits of coverage substantially similar to those contained in the prior policy.</text> </level> </level> <level label="i"> <level label="1"> <text>“Veterinary expenses” means the costs associated with medical advice, diagnosis, care, or treatment provided by a veterinary practitioner.</text> </level> <level label="2"> <text>“Veterinary expenses” includes the cost of drugs prescribed by a veterinary practitioner.</text> </level> </level> <level label="j"> <text>“Veterinary practitioner” has the meaning stated in § 2–301 of the Agriculture Article.</text> </level> <level label="k"> <text>“Waiting period” means the period of time specified in a new pet insurance policy that must elapse before some or all of the coverage in the policy begins.</text> </level> <level label="l"> <text>“Wellness program” means a subscription– or reimbursement–based program that:</text> <level label="1"> <text>is separate from a pet insurance policy; and</text> </level> <level label="2"> <text>provides goods and services to promote the general health, safety, or well–being of the pet.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="19-1102" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <text>It is the intent of the General Assembly to promote the public welfare by creating a comprehensive legal framework within which pet insurance may be sold in the State.</text> </section> <section article="gin" article_name="Insurance" number="19-1103" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <level label="a"> <text>This subtitle applies only to pet insurance policies or certificates that are:</text> <level label="1"> <text>issued to a resident of the State; or</text> </level> <level label="2"> <text>sold, solicited, negotiated, or offered in the State.</text> </level> </level> <level label="b"> <text>All other applicable provisions of this article apply to pet insurance, except that specific provisions of this subtitle supersede any general provisions of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1104" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <level label="a"> <text>A pet insurer transacting pet insurance shall disclose the following to consumers:</text> <level label="1"> <text>all policy exclusions, including exclusions of coverage due to:</text> <level label="i"> <text>a preexisting condition;</text> </level> <level label="ii"> <text>a hereditary disorder;</text> </level> <level label="iii"> <text>a congenital anomaly or disorder; or</text> </level> <level label="iv"> <text>a chronic condition;</text> </level> </level> <level label="2"> <text>any policy provision that limits coverage through a waiting period, a deductible, coinsurance, or an annual or lifetime policy limit;</text> </level> <level label="3"> <text>whether the pet insurer reduces coverage or increases premiums based on the insured’s claim history, the age of the covered pet, or a change in the geographic location of the insured; and</text> </level> <level label="4"> <text>the identity of the underwriting company if the company differs from the brand name used to market and sell the pet insurance policy.</text> </level> </level> <level label="b"> <level label="1"> <text>A notice shall be prominently printed on or attached to the face of the pet insurance policy that states that:</text> <level label="i"> <text>the policy may be surrendered to the insurer for cancellation within 10 days after the date the policy is delivered to the insured; and</text> </level> <level label="ii"> <text>if a policy is canceled during the 10–day period, a pro rata premium for the unexpired term of the policy shall be returned to the insured.</text> </level> </level> <level label="2"> <text>An insured is not entitled to a pro rata premium in accordance with paragraph (1)(ii) of this subsection if the insured has made a claim under the pet insurance policy.</text> </level> </level> <level label="c"> <text>A pet insurer shall clearly disclose a summary description of the basis or formula on which the pet insurer determines claim payments under a pet insurance policy:</text> <level label="1"> <text>within the policy;</text> </level> <level label="2"> <text>before issuing the policy; and</text> </level> <level label="3"> <text>through a clear and conspicuous link on the main page of the website of the pet insurer or pet insurer’s program administrator.</text> </level> </level> <level label="d"> <text>If a pet insurer uses a benefit schedule to determine claim payment under a pet insurance policy, the pet insurer shall:</text> <level label="1"> <text>clearly disclose the applicable benefit schedule in the policy; and</text> </level> <level label="2"> <text>disclose all benefit schedules used by the pet insurer under its pet insurance policies through a clear and conspicuous link on the main page of the website of the pet insurer or pet insurer’s program administrator.</text> </level> </level> <level label="e"> <text>If a pet insurer determines claim payments under a pet insurance policy that are based on usual and customary fees, or any other reimbursement limitation based on prevailing veterinary practitioner charges, the pet insurer shall:</text> <level label="1"> <text>include a usual and customary fee limitation provision in the policy that clearly describes:</text> <level label="i"> <text>the pet insurer’s basis for determining usual and customary fees; and</text> </level> <level label="ii"> <text>how the basis is applied in calculating claim payments; and</text> </level> </level> <level label="2"> <text>disclose the pet insurer’s basis for determining usual and customary fees through a clear and conspicuous link on the main page of the website of the pet insurer or pet insurer’s program administrator.</text> </level> </level> <level label="f"> <text>If a medical examination by a veterinary practitioner is required to begin coverage, the pet insurer shall:</text> <level label="1"> <text>clearly and conspicuously disclose the required aspects of the examination before purchase of the pet insurance policy; and</text> </level> <level label="2"> <text>disclose that examination documentation may result in a preexisting condition exclusion.</text> </level> </level> <level label="g"> <text>A pet insurer shall clearly and prominently disclose any waiting periods and the requirements applicable to the waiting periods before purchase of the pet insurance policy.</text> </level> <level label="h"> <level label="1"> <text>A pet insurer shall:</text> <level label="i"> <text>include with a copy of the pet insurance policy a summary of all policy provisions required in accordance with subsections (a) through (g) of this section in a separate document in at least 12 point type titled: “Insurer Disclosure of Important Policy Provisions”; and</text> </level> <level label="ii"> <text>include the document required under item (i) of this paragraph on the website of the pet insurer or pet insurer’s program administrator through a clear and conspicuous link on the main page of the website.</text> </level> </level> <level label="2"> <text>The document required under paragraph (1)(i) of this subsection shall include all relevant definitions established under § 19–1101 of this subtitle.</text> </level> </level> <level label="i"> <text>At the time a pet insurance policy is issued or delivered to a policyholder, the pet insurer shall include the following information, printed in 12 point boldface type:</text> <level label="1"> <text>the Administration’s mailing address, toll–free telephone number, and website address;</text> </level> <level label="2"> <text>the address and customer service telephone number of the pet insurer or the insurance producer of record for the pet insurer; and</text> </level> <level label="3"> <text>if the policy was issued or delivered by an insurance producer, a statement advising the policyholder to contact the insurance producer for assistance.</text> </level> </level> <level label="j"> <text>The disclosure requirements required in accordance with this section shall be in addition to any other applicable disclosure requirements under this article or regulations adopted under this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1105" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <level label="a"> <level label="1"> <text>A pet insurer may issue policies that exclude coverage on the basis of one or more preexisting conditions with appropriate disclosure to the consumer.</text> </level> <level label="2"> <text>The pet insurer has the burden of proving that the preexisting condition exclusion applies to the condition for which a claim is made.</text> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>Subject to subparagraphs (ii) and (iii) of this paragraph, a pet insurer may issue a policy that imposes a waiting period before coverage under the policy begins.</text> </level> <level label="ii"> <text>A waiting period may not exceed 30 days for an illness or orthopedic condition that does not result from an accident.</text> </level> <level label="iii"> <text>A pet insurer may not impose a waiting period for an illness or orthopedic condition that results from an accident.</text> </level> </level> <level label="2"> <level label="i"> <text>A pet insurer that imposes a waiting period under paragraph (1) of this subsection shall include a provision in the pet insurance policy that allows for the waiving of waiting periods on completion of a medical examination.</text> </level> <level label="ii"> <level label="1"> <text>A pet insurer may require a medical examination under subparagraph (i) of this paragraph to be conducted by a veterinary practitioner after the purchase of the policy.</text> </level> <level label="2"> <text>Unless the pet insurance policy specifies that the pet insurer will pay for a medical examination under subparagraph (i) of this paragraph, a policyholder shall pay for the medical examination.</text> </level> <level label="3"> <text>A pet insurer may:</text> </level> <level label="A"> <text>specify elements to be included as part of a medical examination under subparagraph (i) of this paragraph; and</text> </level> <level label="B"> <text>if the specifications do not unreasonably restrict a policyholder’s ability to waive the waiting period, require documentation of the medical examination.</text> </level> </level> </level> <level label="3"> <text>A pet insurer shall clearly and prominently disclose requirements with respect to applicable waiting periods before purchase of the policy.</text> </level> </level> <level label="c"> <text>A pet insurer shall require that an insured submit a claim under the pet insurance policy after submitting payment to the veterinary practitioner for veterinary expenses.</text> </level> <level label="d"> <text>A pet insurer may not require a medical examination of the covered pet as a condition for the renewal of a policy.</text> </level> <level label="e"> <text>A prescriptive, wellness, or noninsurance benefit included in the policy form for a pet insurance policy is part of the policy and subject to this article and regulations adopted under this article.</text> </level> <level label="f"> <text>A pet insurer may not condition an insured’s eligibility to purchase a pet insurance policy on participation, or lack of participation, in a separate wellness program.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1106" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <level label="a"> <text>A pet insurer or pet insurance producer may not, except as provided in subsection (c) of this section and § 19–1107 of this subtitle, market a wellness program as a pet insurance policy.</text> </level> <level label="b"> <text>If a pet insurer or pet insurance producer sells a wellness program:</text> <level label="1"> <text>the purchase of the wellness program may not be a requirement to purchase the pet insurance;</text> </level> <level label="2"> <text>the costs and the terms and conditions of the wellness program shall be separate and identifiable from any pet insurance policy sold by a pet insurer or pet insurance producer;</text> </level> <level label="3"> <text>the products or coverages available through the wellness program may not duplicate products or coverages available through the pet insurance policy;</text> </level> <level label="4"> <text>the advertising of the wellness program shall accurately and clearly describe the wellness program; and</text> </level> <level label="5"> <text>the pet insurer or pet insurance producer shall clearly and in 12 point boldface type disclose to consumers:</text> <level label="i"> <text>that, except as provided in subsection (c) of this section and § 19–1107 of this subtitle, wellness programs are not insurance;</text> </level> <level label="ii"> <text>the Administration’s mailing address, toll–free telephone number, and website address; and</text> </level> <level label="iii"> <text>the address and customer service telephone number of the pet insurer or producer or insurance producer of record for the pet insurer.</text> </level> </level> </level> <level label="c"> <text>Coverage that is included in the pet insurance policy contract described as a “wellness” benefit is insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="19-1107" title_number="19" title_name="Property and Casualty Insurance" subtitle_number="11" subtitle_name="Pet Insurance"> <text>If a wellness program contracts to indemnify or to pay or provide a specified determinable amount or benefit on the occurrence of a determinable contingency, the wellness program shall be considered insurance and be subject to the provisions of this article and regulations adopted under this article.</text> </section>