In this subtitle the following words have the meanings indicated. “Commercial insurance” means property insurance or casualty insurance issued to an individual, a sole proprietor, partnership, corporation, limited liability company, or similar entity and intended to insure against loss arising from the business pursuits of the insured entity. “Commercial insurance” does not include: policies issued by the Maryland Automobile Insurance Fund; policies issued by the Joint Insurance Association; workers’ compensation insurance; or title insurance. “Personal insurance” means property insurance or casualty insurance issued to an individual, trust, estate, or similar entity that is intended to insure against loss arising principally from the personal, noncommercial activities of the insured. “Personal insurance” does not include: motor vehicle liability insurance policies subject to § 27-613 of this subtitle; policies issued by the Maryland Automobile Insurance Fund; policies issued by the Joint Insurance Association; or surety insurance.

For purposes of this subtitle, with respect to policies of personal insurance, private passenger motor vehicle liability insurance, commercial insurance, and workers’ compensation insurance, the issuance by an insurer of a new policy to replace an expiring policy issued by that insurer is a renewal. For purposes of this subtitle, with respect to policies of personal insurance, private passenger motor vehicle liability insurance, commercial insurance, and workers’ compensation insurance, the issuance by an insurer of a new policy to replace an expiring policy issued by another admitted insurer within the same insurance holding company system, as defined in § 7–101 of this article, is a renewal if: the policyholder’s premium does not increase; and the policyholder does not experience a reduction in coverage.

In this section the following words have the meanings indicated. “Delivered by electronic means” includes: delivery to an electronic mail address at which a party has consented to receive notice; and posting on an electronic network, together with separate notice to a party directed to the electronic mail address at which the party has consented to receive notice of the posting. “Party” means an applicant, an insured, or a policyholder. Subject to subsection (d) of this section, any notice to a party required under this subtitle may be delivered by electronic means provided the process used to obtain consent of the party to have notice delivered by electronic means meets the requirements of Title 21, Subtitle 1 of the Commercial Law Article. Delivery of a notice in accordance with subsection (b) of this section shall be considered equivalent to any delivery method required under this subtitle, including delivery by first–class mail, certified mail, or a first–class mail tracking method. A notice may be delivered by electronic means by an insurer to a party under this section if: the party has affirmatively consented to that method of delivery and has not withdrawn the consent; the party, before giving consent, is provided with a clear and conspicuous statement: informing the party of: any right or option of the party to have the notice provided or made available in paper or another nonelectronic form; the right of the party to withdraw consent to have notice delivered by electronic means and any fees, conditions, or consequences imposed in the event consent is withdrawn; whether the party’s consent applies: only to the particular transaction as to which the notice must be given; or to identified categories of notices that may be delivered by electronic means during the course of the parties’ relationship; how, after consent is given, the party may obtain a paper copy of a notice delivered by electronic means; and the fee, if any, for the paper copy; and the procedures the party must use to withdraw consent to have notice delivered by electronic means and to update information needed to contact the party electronically; the party: before giving consent, is provided with a statement of the hardware and software requirements for access to and retention of a notice delivered by electronic means; and consents electronically, or confirms consent electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices delivered by electronic means as to which the party has given consent; and after consent of the party is given, the insurer, in the event a change in the hardware or software requirements needed to access or retain a notice delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice to which the consent applies: provides the party with a statement of: the revised hardware and software requirements for access to and retention of a notice delivered by electronic means; and the right of the party to withdraw consent without the imposition of any fee, condition, or consequence that was not disclosed under item (2)(i)2 of this subsection; and complies with item (2) of this subsection. This section does not affect the content or timing of any notice required under this subtitle. If a provision of this subtitle requiring notice to be provided to a party expressly requires verification or acknowledgment of receipt of the notice, the notice may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt. The legal effectiveness, validity, or enforceability of any contract or policy of insurance executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subsection (d)(3)(ii) of this section. A withdrawal of consent by a party does not affect the legal effectiveness, validity, or enforceability of a notice delivered by electronic means to the party before the withdrawal of consent is effective. A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the insurer. Failure to comply with subsection (d)(4) of this section may be treated, at the election of the party, as a withdrawal of consent for purposes of this section. This section does not apply to a notice delivered by an insurer in an electronic form before October 1, 2011, to a party who, before October 1, 2011, has consented to receive notice in an electronic form otherwise allowed by law. If the consent of a party to receive notice in an electronic form is on file with an insurer before October 1, 2011, the insurer shall notify the party of: the notices that may be delivered by electronic means under this section; and the party’s right to withdraw consent to have notices delivered by electronic means. Except as otherwise provided by law, if an oral communication or a recording of an oral communication can be reliably stored and reproduced by an insurer, the oral communication or recording may qualify as a notice delivered by electronic means for purposes of this section. If a provision of this subtitle requires a signature or record to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the signature or record. This section may not be construed to modify, limit, or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act relating to the use of an electronic record to provide or make available information that is required to be provided or made available in writing to a party.

This section applies only to policies of: personal insurance; and homeowner’s insurance under which a onetime guaranteed fully refundable deposit is required for a stated amount of coverage. This section does not apply to policies in effect for 45 days or less, as provided in § 12–106 of this article. Whenever an insurer, as required by subsection (c) of this section, gives notice of its intention to cancel or not to renew a policy subject to this section issued in the State or before an insurer cancels a policy subject to this section issued in the State for a reason other than nonpayment of premium, the insurer shall notify the insured of the possible right of the insured to replace the insurance under the Maryland Property Insurance Availability Act or through another plan for which the insured may be eligible. The notice required by paragraph (1) of this subsection must: be in writing; contain the current address and telephone number of the offices of the appropriate plan; and be sent to the named insured at the named insured’s last known address in the same manner and at the same time as the first written notice of cancellation or of intention not to renew given or required by law, regulation, or contract. Subject to paragraph (5) of this subsection, at least 45 days before the date of the proposed cancellation or expiration of the policy, the insurer shall send to the named insured at the named insured’s last known address, by a first–class mail tracking method, a written notice of intention to cancel for a reason other than nonpayment of premium or notice of intention not to renew a policy issued in the State. An insurer shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service. Notice given to the insured by an insurance producer on behalf of the insurer is deemed to have been given by the insurer for purposes of this subsection. Notwithstanding paragraph (3) of this subsection, no notice is required under this section if the insured has replaced the insurance. An insurer may not cancel a policy midterm except: when there exists: a material misrepresentation or fraud in connection with the application, policy, or presentation of a claim; a matter or issue related to the risk that constitutes a threat to public safety; or a change in the condition of the risk that results in an increase in the hazard insured against; for nonpayment of premium; or in the case of homeowner’s insurance, conviction of arson. At least 10 days before the date an insurer proposes to cancel a policy for nonpayment of premium, the insurer shall send to the named insured, at the named insured’s last known address, by a first–class mail tracking method, a written notice of intention to cancel for nonpayment of premium.

This section applies only to policies of commercial insurance. This section does not apply to: policies in effect for 45 days or less, as provided in § 12–106 of this article; or policies issued to exempt commercial policyholders under § 11–206 of this article, if the policies provide for written notice of not less than 30 days of the insurer’s intent to cancel or nonrenew. Whenever an insurer, as required by subsection (c) of this section, gives notice of its intention to cancel or not to renew a policy issued in this State for a reason other than nonpayment of premium, the insurer shall notify the insured of the possible right to replace the insurance under the Maryland Property Insurance Availability Act, through the Maryland Automobile Insurance Fund, or through another plan for which the insured may be eligible. The notice required by paragraph (1) of this subsection shall: be in writing; if applicable, include the current address and telephone number of the offices of the Joint Insurance Association, the Maryland Automobile Insurance Fund, or other appropriate plan; and be sent to the insured in the same manner and at the same time as the first written notice of cancellation or of intention not to renew that is given or required by law, regulation, or contract. Subject to paragraph (5) of this subsection, at least 45 days before the date of the proposed cancellation or expiration of the policy, the insurer shall send to the insured, by a first–class mail tracking method or by commercial mail delivery service, written notice of intention to cancel for a reason other than nonpayment of premium or notice of intention not to renew a policy issued in the State. The insurer shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or other commercial mail delivery service. Notice given to the insured by an insurance producer on behalf of the insurer is deemed to have been given by the insurer for the purposes of this subsection. No notice is required under this subsection if the insured has replaced the insurance. An insurer may not cancel a policy midterm except: when there exists: a material misrepresentation or fraud in connection with the application, policy, or presentation of a claim; a matter or issue related to the risk that constitutes a threat to public safety; or a change in the condition of the risk that results in an increase in the hazard insured against; for nonpayment of premium; or due to the revocation or suspension of the driver’s license or motor vehicle registration: of the named insured or covered driver under the policy; and for reasons related to the driving record of the named insured or covered driver. At least 10 days before the date an insurer proposes to cancel a policy for nonpayment of premium, the insurer shall send to the insured, by a first–class mail tracking method, a written notice of intention to cancel for nonpayment of premium. If an insurer provides a renewal policy and notice of premium due to an insured at least 45 days before the renewal date of the policy and the insured fails to make the required payment by the renewal date, the insurer may terminate the policy on the renewal date for nonpayment of premium after sending to the insured, by a first–class mail tracking method, a written offer to reinstate the renewal policy without lapse in coverage. An offer to reinstate under this subsection shall provide not less than 10 days for the insured to make the required premium payment.

This section applies only to policies of personal insurance and insurance issued under the Maryland Property Insurance Availability Act or any similar act instituted to ensure the availability of insurance. This section does not apply to policies in effect for 45 days or less, as provided in § 12-106 of this article. Whenever an insurer cancels or refuses to renew a policy subject to this section, the insurer must provide to the named insured a statement of the actual reason for the cancellation or refusal to renew. The Commissioner may not disallow a proposed action of an insurer because the statement of actual reason contains: grammatical, typographical, or other errors, if the errors are not material to the proposed action and are not misleading; surplus information, if the surplus information is not misleading; or erroneous information, if in the absence of the erroneous information there is a sufficient basis to support the proposed action. A statement of actual reason is privileged and does not constitute grounds for an action against the insurer, its representatives, or another person that in good faith provides to the insurer information on which the statement is based. The reason given in the statement of actual reason shall be clear and specific. The use of generalized terms such as “personal habits”, “physical handicap or disability”, “living conditions”, “poor morals”, or “violation or accident record” does not meet the requirement of this subsection.

This section applies only to policies of commercial insurance. This section does not apply to: policies in effect for 45 days or less, as provided in § 12–106 of this article; or policies issued to exempt commercial policyholders under § 11–206 of this article, if the policies provide for written notice of not less than 30 days of the insurer’s intent to cancel or nonrenew. Whenever an insurer cancels or refuses to renew a policy subject to this section for a reason other than nonpayment of premium, the insurer must provide to the named insured a written statement of the actual reason for the cancellation or refusal to renew. The reason given in the statement of actual reason shall be clear and specific. The statement shall include the insurer’s offer to provide additional information in support of the proposed action upon the written request of the insured and an address for the insured to submit the request. A written request for information under this subsection shall be sent not more than 30 days from the date of the notice containing the actual reason. On receiving a written request from an insured for additional information under this subsection and prior to the effective date of the proposed action, an insurer shall respond in writing within 15 days. Except as provided in § 27–501 of this title, a request for additional information under this section does not stay the proposed action. The Commissioner may not disallow a proposed action of an insurer because the statement of actual reason contains: grammatical, typographical, or other errors, if the errors are not material to the proposed action and are not misleading; surplus information, if the surplus information is not misleading; or erroneous information, if in the absence of the erroneous information there is a sufficient basis to support the proposed action. Information concerning the actual reason is privileged and does not constitute grounds for an action against the insurer, the insurer’s representatives, an insurance producer, or any other person that in good faith provides information on which the statement is based.

Except for life insurance, health insurance, and annuities, an insurer that intends to cancel or not renew a line of business shall file a plan of withdrawal with the Commissioner at least 180 days before the date of the proposed withdrawal. Notwithstanding paragraph (1) of this subsection, the Commissioner may allow an insurer to file a plan of withdrawal at least 60 days before the date of proposed withdrawal if the Commissioner determines that compliance by the insurer with paragraph (1) of this subsection may result in: the impairment of the insurer; the loss of or substantial changes in applicable reinsurance; or significant financial losses to the insurer. For health insurance: an insurer that intends to cancel or not renew a health insurance product, as defined by the Commissioner, for all of its covered insureds in the State shall file a plan of withdrawal with the Commissioner at least 90 days before the date of the proposed cancellation or nonrenewal; and an insurer that intends to withdraw completely from the health insurance market in the State by canceling or not renewing all of its health insurance products in the State shall file a plan of withdrawal with the Commissioner at least 180 days before the date of the proposed withdrawal. The plan of withdrawal shall contain: a statement by an elected officer of the insurer that the cancellation or nonrenewal action is necessary as a result of: the loss of or substantial changes in applicable reinsurance; financial losses of the insurer; or another business or economic reason of the insurer; if the reason for cancellation or nonrenewal is loss of or substantial changes in reinsurance, a statement that explains: that the insurer made a good faith effort to obtain replacement reinsurance, but was unable to do so due to either the unavailability or unaffordability of replacement reinsurance; how the loss of or reduction in reinsurance affects the insurer’s risks throughout the entire line or category of insurance proposed for cancellation or nonrenewal; and why cancellation or nonrenewal is necessary to cure the loss of or reduction in available reinsurance; and notwithstanding the reason for cancellation or nonrenewal, a statement that: identifies the category of risk, the total number of risks written by the insurer in that line of business, and the number of risks intended to be canceled or not renewed; explains how the cancellation or nonrenewals, if approved, will be implemented with respect to individual risks and the steps that will be taken to ensure that the cancellation or nonrenewal decisions will not be applied in an arbitrary, capricious, or unfairly discriminatory manner or in violation of § 27–501 of this title; and includes any other information that the Commissioner reasonably requires. If a plan of withdrawal filed with the Commissioner is not accompanied by the information required by this section, the Commissioner may so inform the insurer and the plan of withdrawal will be deemed filed when the information is provided to the Commissioner. After an insurer has filed a plan of withdrawal with the Commissioner, the insurer shall notify in writing each of its insurance producers in the State that the insurer has filed a plan of withdrawal. The Commissioner shall review each plan of withdrawal to determine its compliance with this section and § 27–501 of this title. The Commissioner shall disapprove each plan of withdrawal that does not comply with this section. If the Commissioner disapproves a plan, the Commissioner shall issue an order of disapproval that includes specific reasons for the disapproval. Subject to paragraph (3) of this subsection, a plan filed under this section is deemed approved if the Commissioner fails to approve or disapprove the plan within 60 days after the date of filing by the insurer. If a filing is deemed approved under this paragraph, the filing becomes effective on the 60th day after the date of filing. If the Commissioner does not have sufficient information to determine whether a filing or amended filing meets the requirements of this section, the Commissioner: shall require the insurer to provide the necessary information; and may extend the period for approval until the information is provided. A plan may be withdrawn or amended by the insurer at any time before approval. After approval or disapproval of a plan, the withdrawal or amendment of the plan is subject to the approval of the Commissioner. The Commissioner may disapprove a plan of withdrawal for health insurance if an insurer, nonprofit health service plan, or health maintenance organization has failed to demonstrate compliance with § 15–1212 or § 15–1308 of this article. The provisions of subsections (a)(3) and (b) through (f) of this section that apply to insurers also apply to health maintenance organizations.

This section applies only to policies of personal insurance and insurance issued under the Maryland Property Insurance Availability Act or any similar act instituted to ensure the availability of property insurance. At least 45 days prior to the renewal date of a policy subject to this section, the insurer shall send a notice to the named insured and the insurance producer, if any, by first-class mail stating both the amount of the renewal policy premium and the amount of the expiring policy premium.

This section applies to: policies of commercial insurance; and policies of workers’ compensation insurance. This section does not apply to policies: issued to exempt commercial policyholders, as defined in § 11–206(j) of this article; or for which the renewal policy premium is an increase over the expiring policy premium of 15% or less. Unless an insurer has given notice of its intention not to renew a policy subject to this section, if the insurer seeks to increase the renewal policy premium, the insurer shall send a notice to the named insured and insurance producer, if any, not less than 45 days prior to the renewal date of the policy. Subject to subsection (d) of this section, a notice under this section shall include: both the expiring policy premium and the renewal policy premium; and the telephone number for the insurer or insurance producer, if any, together with a statement that the insured may call to request additional information about the premium increase. If an insurer seeks to increase the renewal policy premium and the insurer’s rating methodology requires the insured to provide information to calculate the renewal policy premium, an insurer shall provide a reasonable estimate of the renewal policy premium if: the insurer has requested the required information from the insured; and the insurer has not received the requested information. A reasonable estimate under this subsection shall be based upon the information available to the insurer at the time the notice is sent. The requirements of this section do not apply to the extent that the premium increase results from: an increase in the units of exposure; the application of an experience rating plan; the application of a retrospective rating plan; a change made by the insured that increases the insurer’s exposure; or an audit of the insured. A notice required by this section shall be sent by first–class mail and may be sent together with the renewal policy. An insurer may not be required to comply with any notice requirement of this section if, not less than 45 days before the effective date of the renewal policy, the insurer has sent: to the named insured, a renewal policy that includes the renewal policy premium; and to the independent insurance producer, if any: a copy of the renewal policy that includes the renewal policy premium through postal or electronic mail; or at the same time as the insurer sends the renewal policy to the insured, a notice of the availability of the renewal policy through the insurer’s online electronic system; to the named insured and insurance producer, if any, a written notice of renewal or continuation of coverage that includes the renewal or continuation premium; or to the named insured and insurance producer, if any, a renewal offer that includes a reasonable estimate of the renewal policy premium.

This section applies to policies of commercial insurance and policies of workers’ compensation insurance. If a policyholder is being transferred between admitted insurers within the same insurance holding company system, as defined in § 7–101 of this article, the insurer providing the new policy shall provide notice of the transfer to the policyholder. An insurer shall be considered to have met the notice requirement of this section if the insurer has sent to the named insured a renewal policy that includes a notice of transfer, or a notice on the declaration page of the renewal policy, notifying the insured that the policy has been transferred from the prior named insurer to the new or renewing named insurer.

This section does not apply to a premium increase for a driver or vehicle due to a program that measures the operation of an insured vehicle during the current policy period. This paragraph applies to a private passenger motor vehicle liability insurance policy issued in the State under which more than one individual is insured. If an insurer is authorized under this article to cancel, nonrenew, or increase the premiums on a policy of private passenger motor vehicle liability insurance subject to this paragraph because of the claim experience or driving record of one or more but less than all of the individuals insured under the policy, the insurer, instead of cancellation, nonrenewal, or premium increase, shall offer to continue or renew the insurance, but to exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the cancellation, nonrenewal, or premium increase. This paragraph applies to a motor vehicle liability insurance policy issued in the State, other than a policy subject to paragraph (1) of this subsection, under which more than one individual is insured. If an insurer is authorized under this article to cancel, nonrenew, or increase the premiums on a policy of motor vehicle liability insurance subject to this paragraph because of the claim experience or driving record of one or more but less than all of the individuals insured under the policy, the insurer, instead of cancellation, nonrenewal, or premium increase, may offer to continue or renew the insurance, but to exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the cancellation, nonrenewal, or premium increase. If an insurer legally could refuse to issue a policy of motor vehicle liability insurance under which more than one individual is insured because of the claim experience or driving record of one or more but less than all of the individuals applying to be insured under the policy, the insurer may issue the policy but exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the refusal to issue. A policy described in subsection (b) or (c) of this section may be endorsed to exclude specifically all coverage for any of the following when the named excluded driver is operating a motor vehicle covered under the policy whether or not that operation or use was with the express or implied permission of an individual insured under the policy: the excluded operator or user; the motor vehicle owner; family members residing in the household of the excluded operator or user or motor vehicle owner; and any other person, except for the coverage required by §§ 19–505 and 19–509 of this article if that coverage is not available under another motor vehicle policy. The premiums charged on a policy that excludes a named driver or drivers under this section may not reflect the claim experience or driving record of the excluded named driver or drivers.

This section applies only to policies of personal insurance and private passenger motor vehicle liability insurance policies subject to § 27–613 of this subtitle. Unless an insurer has provided notice of its intention not to renew a policy in compliance with this subtitle, the insurer must provide each policyholder with notice of renewal premium due at least 45 days before the due date. If a policyholder is being transferred between admitted insurers within the same insurance holding company system, as defined in § 7–101 of this article, the notice required under paragraph (2) of this subsection shall include disclosure of the transfer. A licensed insurance producer may provide notice under paragraph (2) of this subsection on behalf of the insurer. The duty to provide notice under paragraph (2) of this subsection is deemed discharged if: the insurer shows that its established procedures would have resulted in placing the notice of renewal premium due in the United States mail; and there is no showing that in fact the notice was not placed in the mail. If an insurer fails to provide notice of renewal premium due under subsection (a) of this section, and subsequently the policyholder fails to make timely payment of the renewal premium, the insurer must: provide coverage for each claim that: would have been covered under the policy; and arises within 45 days after the date the insured discovers or should have discovered that the policy was not renewed; and renew the policy on tender of payment within 30 days after the policyholder discovers or should have discovered that the policy was not renewed.

Before the actual expiration of a policy of motor vehicle insurance that results from nonpayment of a renewal premium, the insurer shall provide notice to the insured in clear and specific terms that if the insured fails to renew or replace the motor vehicle insurance before the due date, § 17-106 of the Transportation Article provides that uninsured motorist penalties be assessed and that evidences of registration be surrendered to the Motor Vehicle Administration and that failure to surrender the evidences of registration may result in suspension of current and future registration privileges.

If an insurer fails to comply with any provision of § 27-602, § 27-603, § 27-604, § 27-605, § 27-606, § 27-607, § 27-608, § 27-610, or § 27-613 of this subtitle, the insurer is liable to the applicant for the coverage that was requested, or that would have become effective except for the failure to comply with these provisions, unless the person seeking coverage: no longer wishes the coverage; has obtained other substantially equivalent coverage; or fails to tender or pay the premium after reasonable demand for the premium has been made. The liability of an insurer under paragraph (1) of this subsection is in addition to any other penalties applicable by law. Liability for coverage does not apply to failure to comply with § 27-611 of this subtitle, as it relates to motor vehicle liability insurance.

This section applies only to private passenger motor vehicle liability insurance. This section does not apply to the Maryland Automobile Insurance Fund. This section does not apply to the cancellation of a policy or binder of private passenger motor vehicle liability insurance by an insurer during the 45–day underwriting period in accordance with § 12–106 of this article. In accordance with this section, with respect to a policy of private passenger motor vehicle liability insurance or a binder of private passenger motor vehicle liability insurance, if the binder has been in effect for at least 45 days, issued in the State to any resident of the household of the named insured, an insurer may: cancel or fail to renew the policy or binder; or reduce coverage under the policy. Notwithstanding paragraph (1) of this subsection, the requirements of this section do not apply if: the reduction in coverage described in paragraph (1)(ii) of this subsection is part of a general reduction in coverage approved by the Commissioner or satisfies the requirements of Title 19, Subtitle 5 of this article; or the failure to renew the policy takes place under a plan of withdrawal that: is approved by the Commissioner under § 27–606 of this subtitle; and provides that each insured affected by the plan of withdrawal shall be sent by a first–class mail tracking method at least 45 days before the nonrenewal of the policy a written notice that states the date that the policy will be nonrenewed and that the nonrenewal is the result of the withdrawal of the insurer from the market. Notwithstanding paragraph (1) of this subsection, an insurer may not cancel a policy midterm except: when there exists: a material misrepresentation or fraud in connection with the application, policy, or presentation of a claim; a matter or issue related to the risk that constitutes a threat to public safety; or a change in the condition of the risk that results in an increase in the hazard insured against; for nonpayment of premium; or due to the revocation or suspension of the driver’s license or motor vehicle registration: of the named insured or covered driver under the policy; and for reasons related to the driving record of the named insured or covered driver. At least 45 days before the proposed effective date of the action, an insurer that intends to take an action subject to this section shall send written notice of its proposed action to the insured at the last known address of the insured: for notice of cancellation or nonrenewal, by certified mail; and for all other notices of actions subject to this section, by a first–class mail tracking method. The notice must be on a form approved by the Commissioner. The notice must state in clear and specific terms: the proposed action to be taken, including for a reduction in coverage, the type of coverage reduced and the extent of the reduction; the proposed effective date of the action; subject to paragraph (4) of this subsection, the actual reason of the insurer for proposing to take the action; if there is coupled with the notice an offer to continue or renew the policy in accordance with § 27–609 of this subtitle: the name of the individual or individuals to be excluded from coverage; and the premium amount if the policy is continued or renewed with the named individual or individuals excluded from coverage; the right of the insured to replace the insurance through the Maryland Automobile Insurance Fund and the current address and telephone number of the Fund; the right of the insured to protest the proposed action of the insurer and request a hearing before the Commissioner on the proposed action by: signing a copy of the notice and sending it to the Commissioner within 30 days after the mailing date of the notice; or filing the protest electronically through the consumer complaint portal on the Administration’s website within 30 days after the mailing date on the notice; that if a protest is filed by the insured, the insurer must maintain the current insurance in effect until a final determination is made by the Commissioner, subject to the payment of any authorized premium due or becoming due before the determination; and that the Commissioner shall order the insurer to pay reasonable attorney’s fees incurred by the insured for representation at the hearing if the Commissioner finds that: the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with § 27–501 of this title, the insurer’s filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage; and the insurer’s conduct in maintaining or defending the proceeding was in bad faith or the insurer acted willfully in the absence of a bona fide dispute. The insurer’s statement of actual reason for proposing to take an action subject to this section must be clear and specific and include a brief statement of the basis for the action, including, at a minimum: if the action of the insurer is due wholly or partly to an accident: the name of the driver; the date of the accident; and if fault is a material factor for the insurer’s action, a statement that the driver was at fault; if the action of the insurer is due wholly or partly to a violation of the Maryland Vehicle Law or the vehicle laws of another state or territory of the United States: the name of the driver; the date of the violation; and a description of the violation; if the action of the insurer is due wholly or partly to the claims history of an insured, a description of each claim; whether the insurer’s action is based on a violation of law, policy terms or conditions, or the insurer’s underwriting standards; whether the insurer’s action is based on a material misrepresentation; and any other information that is the basis for the insurer’s action. The use of generalized terms such as “personal habits”, “living conditions”, “poor morals”, or “violation or accident record” does not meet the requirements of this paragraph. The Commissioner may not disallow a proposed action of an insurer because the statement of actual reason contains: grammatical errors, typographical errors, or other errors provided that the errors are nonmaterial and not misleading; surplus information, provided that the surplus information is nonmaterial and not misleading; or erroneous information, provided that in absence of the erroneous information, there remains a sufficient basis to support the action. At least 10 days before the date an insurer proposes to cancel a policy for nonpayment of premium, the insurer shall send to the insured, by a first–class mail tracking method, a written notice of intention to cancel for nonpayment of premium. A statement of actual reason contained in the notice given under subsection (c) of this section is privileged and does not constitute grounds for an action against the insurer, its representatives, or another person that in good faith provides to the insurer information on which the statement is based. This subsection does not apply to an action of an insurer taken under subsection (d) of this section. An insured may protest a proposed action of the insurer under this section by: signing a copy of the notice and sending it to the Commissioner within 30 days after the mailing date of the notice; or filing the protest electronically through the consumer complaint portal on the Administration’s website within 30 days after the mailing date on the notice. On receipt of a protest, the Commissioner shall notify the insurer of the filing of the protest. A protest filed with the Commissioner stays the proposed action of the insurer pending a final determination by the Commissioner. The insurer shall maintain in effect the same coverage and premium that were in effect on the day the notice of proposed action was sent to the insured until a final determination is made, subject to the payment of any authorized premium due or becoming due before the determination. Based on the information contained in the notice, the Commissioner shall: determine whether the protest by the insured has merit; and dismiss the protest or disallow the proposed action of the insurer. The Commissioner shall notify the insurer and the insured of the action of the Commissioner promptly in writing. Subject to paragraph (4) of this subsection, within 30 days after the mailing date of the Commissioner’s notice of action, the aggrieved party may request a hearing. The Commissioner shall: Hold a hearing within a reasonable time after the request for a hearing; and give written notice of the time and place of the hearing at least 10 days before the hearing. A hearing held under this subsection shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. At the hearing the insurer has the burden of proving its proposed action to be in accordance with the insurer’s filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, as applicable, and not in violation of § 27–501 of this title and, in doing so, may rely only on the reasons set forth in its notice to the insured. The Commissioner shall issue an order within 30 days after the conclusion of the hearing. If the Commissioner finds the proposed action of the insurer to be in accordance with the insurer’s filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, as applicable, and not in violation of § 27–501 of this title, the Commissioner shall: dismiss the protest; and allow the proposed action to be taken on the later of: its proposed effective date; and 30 days after the date of the determination. If the Commissioner finds that the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with § 27–501 of this title, the insurer’s filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, the Commissioner shall: disallow the action; and order the insurer to pay reasonable attorney’s fees incurred by the insured for representation at the hearing if the Commissioner finds that the insurer’s conduct in maintaining or defending the proceeding was in bad faith or the insurer acted willfully in the absence of a bona fide dispute. The Commissioner may delegate the powers and duties of the Commissioner under this section to one or more employees or hearing examiners. A party to a proceeding under this section may appeal the decision of the Commissioner in accordance with § 2–215 of this article.

In this section, “increase in premium” and “premium increase” include an increase in total premium for a policy due to: a surcharge; retiering or other reclassification of an insured; or removal or reduction of a discount. This section applies only to private passenger motor vehicle liability insurance. This section does not apply to the Maryland Automobile Insurance Fund. This section does not apply to an increase in premium made by an insurer during the 45–day underwriting period in accordance with § 12–106(d)(2) and (3) of this article. Except as provided in paragraph (2) of this subsection, at least 45 days before the effective date of an increase in the total premium for a policy of private passenger motor vehicle liability insurance, the insurer shall send written notice of the premium increase to the insured at the last known address of the insured by a first–class mail tracking method. The notice required by paragraph (1) of this subsection need not be given if the premium increase is part of a general increase in premiums that is filed in accordance with Title 11 of this article and does not result from a reclassification of the insured. The notice may accompany or be included in the renewal offer or policy. The notice must be on a form approved by the Commissioner. The notice must state in clear and specific terms: the premium for the current policy period; the premium for the renewal policy period; the basis for the action, including, at a minimum: if the premium increase is due wholly or partly to an accident: the name of the driver; the date of the accident; and if fault is a material factor for the insurer’s action, a statement that the driver was at fault; if the premium increase is due wholly or partly to a violation of the Maryland Vehicle Law or the vehicle laws of another state or territory of the United States: the name of the driver; the date of the violation; and a description of the violation; if the premium increase is due wholly or partly to the claims history of an insured, a description of each claim; if the premium increase is due to a program that measures the operation of an insured vehicle during the current policy period: a specific description of the factor or factors in the program resulting in the premium increase; and the amount of the premium increase that is attributable to the program; and any other information that is the basis for the insurer’s action; that the insured should contact the insured’s insurance producer or insurer for a review of the premium if the insured has a question about the increase in premium or believes the information in the notice is incorrect; the right of the insured to protest the premium increase and, in the case of a premium increase of more than 15% for the entire policy, to request a hearing before the Commissioner by mailing, transmitting by facsimile to the Commissioner, or filing electronically through the consumer complaint portal on the Administration’s website a protest that includes: a copy of the notice; the insured’s address and daytime telephone number; and a statement of the reason that the insured believes the premium increase is incorrect; the address and facsimile number of the Administration; and that the Commissioner shall order the insurer to pay reasonable attorney’s fees incurred by the insured for representation at a hearing if the Commissioner finds that: the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with this article or the insurer’s filed rating plan; and the insurer’s conduct in maintaining or defending the proceeding was in bad faith or the insurer acted willfully in the absence of a bona fide dispute. If the insured believes that the premium increase is incorrect, the insured may protest the proposed action of the insurer within 30 days after the mailing date of the notice by mailing, transmitting by facsimile to the Commissioner, or filing electronically through the consumer complaint portal on the Administration’s website a protest that includes: a copy of the notice; the insured’s address and daytime telephone number; and a statement of the reason that the insured believes the premium increase is incorrect. On receipt of a protest, the Commissioner shall notify the insurer of the filing of the protest. Except as provided in subparagraph (ii) of this paragraph, a protest filed with the Commissioner does not stay the proposed action of the insurer. If a premium increase for a policy exceeds 15%, the Commissioner may order a stay of the premium increase pending a final decision if the Commissioner makes a finding that the premium increase: may cause the policyholder undue harm; and is in violation of the insurer’s filed rating plan. Based on the information contained in the notice, the Commissioner shall: determine whether the insurer’s action is in accordance with the insurer’s filed rating plan and this article; and dismiss the protest or disallow the proposed action of the insurer. The Commissioner shall notify the insurer and the insured of the action of the Commissioner promptly in writing. For a premium increase of more than 15% for the entire policy, within 30 days after the mailing date of the Commissioner’s notice of action, the aggrieved party may request a hearing. The Commissioner shall: hold a hearing within a reasonable time after the request for a hearing; and give written notice of the time and place of the hearing at least 10 days before the hearing. A hearing requested under this subsection shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. At the hearing the insurer has the burden of proving its proposed action to be in accordance with its filed rating plan and this article and, in doing so, may rely only on the reasons set forth in its notice to the insured. The Commissioner shall issue an order within 30 days after the conclusion of the hearing. If the Commissioner finds the proposed action of the insurer to be in accordance with the insurer’s filed rating plan and this article, the Commissioner shall: dismiss the protest; and if the insurer’s action is stayed, allow the proposed action of the insurer to be taken on the later of: its proposed effective date; and 30 days after the date of the determination. If the Commissioner finds that the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with the insurer’s filed rating plan or this article, the Commissioner shall: disallow the action; and order the insurer to pay reasonable attorney’s fees incurred by the insured for representation at the hearing if the Commissioner finds that the insurer’s conduct in maintaining or defending the proceeding was in bad faith or the insurer acted willfully in the absence of a bona fide dispute. The Commissioner may not dismiss a protest solely because of the insured’s failure to state a reason that the insured believes the premium increase is incorrect. If the Commissioner disallows a premium increase for the entire policy, the insurer, within 30 days after the disallowance, shall: return to the insured all disallowed premium received from the insured; and pay to the insured interest on the disallowed premium received from the insured calculated at 10% a year from the date the disallowed premium was received to the date the disallowed premium was returned. If an insurer fails to return any disallowed premium and interest to the insured as provided in paragraph (1) of this subsection within 30 days after the Commissioner disallows the action of the insurer, the insurer shall pay interest on the disallowed premium calculated at 20% a year beginning on the 31st day following the disallowance to the date the disallowed premium is returned. If an insurer fails to return any disallowed premium or fails to pay interest to an insured in violation of paragraphs (1) and (2) of this subsection, the insurer is subject to the penalties under § 4–113(d) of this article. A party to a proceeding under this section may appeal the decision of the Commissioner in accordance with § 2–215 of this article.