<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".09" citation="COMAR 31.03.06.09" title_num="31" subtitle_num="03" chapter_num="06" heading="Disclosure Form.">
  <paragraph num="A.">
    <text>Printing Specifications; Provision of Form to Insured. The written disclosure required by Insurance Article, §3-308, Annotated Code of Maryland, shall be:</text>
    <paragraph num="(1)">
      <text>In the form set forth in §B of this regulation in at least 14-point type;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>On a separate piece of paper that:</text>
      <paragraph num="(a)">
        <text>Contains only the disclosure; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Is attached to the insurance contract or binder; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Provided to the insured at the time of the initial purchase or delivery of an insurance contract or binder from a surplus lines insurer and at each renewal of the insurance contract.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Form.</text>
  </paragraph>
  <paragraph num="C.">
    <text>In addition to the disclosure required by §B of this regulation, the surplus lines broker shall:</text>
    <paragraph num="(1)">
      <text>Provide a clear and conspicuous written disclosure to the prospective insured of:</text>
      <paragraph num="(a)">
        <text>Any inspection fee;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The total amount of the policy fee;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The premium tax on the policy;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Any financial interest of the person performing the inspection, if applicable;</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Whether the surplus lines broker will receive compensation from the person that performs the inspection; and</text>
      </paragraph>
      <paragraph num="(f)">
        <text>Any charge for actual expenses incurred by the surplus lines broker for payment of the premium, policy fee, and any other fees and taxes relating to the policy by use of a credit card; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Notify the prospective insured of the option to obtain the inspection from another person who meets the requirements of or is approved by the surplus lines broker.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Signature of Insured on Disclosure Form for Policies Covering Residential Property or a Condominium.</text>
    <paragraph num="(1)">
      <text>This section applies only to the written disclosure form for an insurance policy covering residential property or a condominium.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>In addition to the text required by §B of this regulation, the disclosure form for an insurance policy covering residential property or a condominium shall include blanks for the insured's signature, the insured's printed name, and the execution date.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Whenever residential property or condominium insurance is placed or renewed with a surplus lines insurer, the originating insurance producer shall obtain the signature of the insured, the insured's printed name, and the execution date on the disclosure form.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>On execution, the originating insurance producer shall:</text>
      <paragraph num="(a)">
        <text>Send the original copy of the disclosure form to the surplus lines broker;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Provide a copy of the disclosure form to the insured; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Keep a copy of the disclosure form in the files of the originating insurance producer for at least 3 years after the date of execution by the insured.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>The surplus lines broker shall:</text>
      <paragraph num="(a)">
        <text>Retain the original copy of the disclosure form for at least 3 years after the date of execution by the insured; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Make the disclosure form available for inspection by the Commissioner on request.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Disclosure Form Requirements for Policies Not Covering Residential Property or a Condominium.</text>
    <paragraph num="(1)">
      <text>This section applies only to a written disclosure form for an insurance policy that does not cover residential property or a condominium.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The surplus lines broker or the originating insurance producer shall provide the insured with the written disclosure required by §B of this regulation in the manner specified by §A of this regulation.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The surplus lines broker or the originating insurance producer shall:</text>
      <paragraph num="(a)">
        <text>Certify on a form approved by the Commissioner that the disclosure notice required by this regulation has been delivered to the insured with the insurance policy or binder; or</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Obtain from the insured written acknowledgment of receipt of the disclosure form.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>If the surplus lines broker or the originating insurance producer obtains written acknowledgement of receipt of the disclosure form, the surplus lines broker or the originating insurance producer shall:</text>
      <paragraph num="(a)">
        <text>Retain for at least 3 years a copy of the written acknowledgment of receipt from the insured; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Make the acknowledgment available for inspection by the Commissioner on request.</text>
      </paragraph>
    </paragraph>
  </paragraph>
</regulation>