# Insurance (GIN) ## Title 19. Property and Casualty Insurance ### Subtitle 3. Fire Insurance Application Act #### Section 19-301 In this subtitle, "antiarson application" means an application for property insurance covering the peril of fire that: (1) requires an applicant to provide the basic information normally supplied to an insurer by an applicant for that type of coverage; and (2) includes certain additional questions to be answered by the applicant. #### Section 19-302 (a) 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. (b) This subtitle does not apply to a renewal of an existing property insurance policy or contract. #### Section 19-303 The Commissioner may adopt regulations to carry out this subtitle. #### Section 19-304 (a) 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. (b) 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. (c) 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. (d) (1) The Commissioner may not require the use of any application for property insurance covering the peril of fire other than an antiarson application. (2) Paragraph (1) of this subsection does not prohibit the Commissioner from requiring the use of alternative antiarson applications in accordance with Sec. 19-306 of this subtitle. #### Section 19-305 (a) (1) 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. (2) In adopting the antiarson application form, the Commissioner shall consider generally recognized two-tier application forms. (b) An antiarson application shall include: (1) the name and address of the applicant, any mortgagee, and any other party with an ownership interest in the property to be insured; (2) the amount of insurance requested and the method of valuation used to establish that amount; (3) 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; (4) the applicant's history of losses during the 5-year period immediately preceding the date of the antiarson application with regard to any property: (i) in which the applicant held an interest, including a partnership or mortgage interest, that is substantial; and (ii) that sustained a fire loss exceeding 25% of the insured value; (5) all taxes that are unpaid or overdue for 1 or more years; and (6) the present occupancy of the property to be insured. #### Section 19-306 (a) The Commissioner may require the use of an alternative antiarson application if, after a public hearing, the Commissioner finds that: (1) 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 (2) in accordance with this subtitle, the antiarson application described in Sec. 19-305 of this subtitle was implemented with respect to that type of policy, class of property, or geographic area of the State. (b) 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. #### Section 19-307 (a) (1) An antiarson application required under this subtitle is a material part of the policy to which the application pertains. (2) A material misrepresentation in an antiarson application is grounds to rescind the policy. (b) (1) 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. (2) 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. #### Section 19-308 (a) (1) This subsection does not apply to a contract to insure an owner-occupied dwelling for one to four families. (2) 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. (b) 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. #### Section 19-309 (a) 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. (b) An insurer shall state the specific reasons for terminating a policy or insurance contract in the notice of termination to the insured. --- Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)