This chapter applies to commercial monoline fire policies, designated occupancies, and areas of the State that are found by the Insurance Commissioner, after a public hearing, to have an abnormally high incidence of arson, except a one to four family owner-occupied dwelling, for loss due to fire as provided in Insurance Article, Title 19, Subtitle 3, Annotated Code of Maryland. This chapter also applies to any existing insurance policy which is assigned because of the transfer of a major financial interest in the insured property. An applicant is considered to hold a substantial interest or a major financial interest in any property or mortgage when the value held in a property or mortgage is equal to 10 percent of the ownership interest. An antiarson application may be used for commercial monoline fire policies, designated occupancies, and designated areas of the State, based upon a finding by the Insurance Commissioner, after a public hearing, that these commercial monoline fire policies, designated occupancies, and areas of the State have an abnormally high incidence of arson. The Insurance Commissioner may extend the application of these regulations to other than commercial monoline fire policies if the Insurance Commissioner finds, after public hearing, that the properties insured through those other types of policies are especially prone to arson. Each insurer or producer soliciting insurance requiring the use of an antiarson application shall obtain from the applicant the information required by the form of application designated as Standard Antiarson Application Part 1 as set forth in Regulation .03 of this chapter. The completed application shall be obtained before the risk is bound. The insurer or producer may not bind the risk or issue the coverage unless the applicant returns a completed and signed antiarson application. If the Part 1 application indicates that further information is necessary, the insurer or producer shall require the applicant to complete the Standard Antiarson Application Part 2, as set forth in Regulation .04 of this chapter. The insurer may cancel the policy or binder under either of the following circumstances by giving the insured a notice of cancellation stating the specific reason for the action: If the applicant does not furnish the insurer a completed and signed Antiarson Application Part 2 within 20 days after being requested to do so; or Under the conditions stated in Insurance Article, §19-309, Annotated Code of Maryland, within 90 days from receipt by the insurer of the Antiarson Application Part 2. Changes In Information Given In Antiarson Application. In delivering any policy in connection with which an antiarson application was received, the insurer shall notify the policyholder that the policyholder is required to inform the insurer in writing of any change in the information originally given in an Antiarson Application, Part 1 or Part 2. The failure of the policyholder to notify the insurer in writing of any material change within 20 days of the change, shall be considered grounds to rescind the policy. STATE OF MARYLAND STANDARD ANTIARSON APPLICATION PART I NAME OF APPLICANT/INSURED ______________________________________ LOCATION OF STRUCTURE __________________________________________ PRESENT OCCUPANCY OF STRUCTURE _________________________________ Amount of Insurance __________ Applicant is: Owner Occupant [ ] Absentee Owner [ ] Tenant [ ] VALUATION: This information helps to explain the amount of insurance selected at the time of application, but does not determine the value at the time of loss. Purchase Information: Date _________________ Price $_______ Estimated Replacement Cost $_____________________________ For rental properties, indicate the Annual Rental Income Check the valuation method used to establish the amount of insurance: Who determined the value?________________________________ UNDERWRITING INFORMATION: If the answer to any of the following is “yes”, complete Part 2. Is the applicant other than an individual or sole proprietorship? Are there any taxes unpaid or overdue for 1 or more years? Are there any tax liens against the property or business? Has anyone with a financial interest in this property been convicted for arson, fraud, or other crime related to loss on property owned now or during the last 10 years? Is the mortgagee other than a federal or State chartered lending institution? Have there been losses over the last 10 years with regard to any property in which the applicant held a substantial financial interest including a partnership interest or a mortgage and where any fire loss was in excess of 25% of the insured value? Is any portion of the building or any apartment vacant, unoccupied, or used on a seasonal basis? Has any coverage or policy on this property been declined, cancelled, or nonrenewed in the last 3 years? Is there any other insurance in force or to be secured on this property? Has the applicant owned this property for less than 3 years? THE PROPOSED INSURED DECLARES THAT THE INFORMATION PROVIDED ON THIS AND ANY OTHER APPLICATION, IS TRUE, COMPLETE, AND CORRECT BASED ON HIS/HER RECORDS, KNOWLEDGE AND BELIEF. THE PROPOSED INSURED AGREES THAT THESE APPLICATIONS SHALL CONSTITUTE A PART OF ANY POLICY ISSUED AND THAT ANY WILLFUL CONCEALMENT OR STATE OF MARYLAND STANDARD ANTIARSON APPLICATION PART 2 Ownership Information: Check the type of ownership for the insured property: Complete the following for all those possessing an ownership interest of 10% or more, except that all owners should be listed for closed corporations and beneficiaries. Have any of the owners listed above: Within the past ten years, claimed any fire loss for the destruction of 25% or more of any insured property? Been convicted of any crimes? Mortgage Payments: Unrecorded Mortgages: Taxes (include Real Estate, Water, Sewer, Special Privilege, etc.): Is the building for sale? Vacancy. Indicate seasonal period (if any) when building is unused: For apartment buildings indicate: For other buildings indicate percent vacant:_____ For all buildings indicate the following: Reason for vacancy/unoccupancy:______________ Anticipated date of occupancy:_______________ If the building is vacant or unoccupied, indicate how it is protected from unauthorized entry_________________ ________________________________________________________ Additional Property Description: Is water, sewage, electricity, or heat out of service? Is there unrepaired damage or have items been stripped from the building? Are any violations outstanding with regard to the Fire, Building or Health Code? Is there a governmental order to vacate or destroy the building or has the building been classified uninhabitable or structurally unsafe? Other Policies: List all other policies which insure this property against fire loss: List all real estate transactions during last 3 years involving this property: Insurance Article, §2-109 and Title 19, Subtitle 3, Annotated Code of Maryland Effective date: June 1, 1983 (10:6 Md. R. 556) Chapter recodified from COMAR 09.30.60 to COMAR 31.08.01effective September 7, 1998 (25:18 Md. R. 1439) Regulation .02A—C amended effective January 1, 2018 (44:4 Md. R. 256) This chapter applies to the purchase of private passenger automobile insurance only. The Insurance Commissioner shall establish a toll-free telephone number to assist and educate consumers concerning the purchase of private passenger automobile insurance. The Commissioner may provide to callers educational materials that may include a rate guide or list of insurance producers and insurers. The Commissioner may not recommend to callers specific insurers or insurance producers. The toll-free telephone number shall be published in the private passenger automobile insurance rate guide prepared by the Commissioner. The Commissioner shall maintain a record of calls received on the toll-free telephone number set forth in Regulation .02A of this chapter which includes the following information: The zip code and county of the caller; and The date and summary of the purpose of the call. The Commissioner shall prepare a quarterly report which includes the information required in §A of this regulation. Insurance Article, §2-109, Annotated Code of Maryland Effective date: May 6, 1996 (23:9 Md. R. 670) Chapter recodified from COMAR 09.31.14 to COMAR 31.08.02 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .02B, C amended effective January 1, 2018 (44:4 Md. R. 256) The purpose of this chapter is to ensure that all insurers issuing private passenger motor vehicle liability insurance policies in Maryland include in their notices of cancellation, nonrenewal, premium increase, or reduction in coverage, a statement concerning the insured's right to protest the proposed action of the insurer within 30 days after the date of mailing of the notice in accordance with Insurance Article, §§27-613 and 27-614, Annotated Code of Maryland, which is incorporated by reference. This chapter applies to all motor vehicle liability insurers authorized to write private passenger motor vehicle liability insurance policies in Maryland, other than the Maryland Automobile Insurance Fund. In this chapter, the following terms have the meanings indicated. Terms Defined. “Affiliated insurer” means an insurer that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another insurer. “Control” means the direct or indirect possession of the power to direct, or cause the direction of, the management and policies of an insurer, regardless of whether the power is exercised by: Ownership of voting securities or of securities convertible into voting securities; Contract, other than a commercial contract for goods or nonmanagement services; or Any other means. “General increase in premiums” means an increase in premiums because of a change in an insurer's rates or a modification of the insurer's rating plan. “MIA Form 1006-A” means the notice of premium increase form in Regulation .07 of this chapter that insurers may use for premium increases of 15 percent or less for an entire policy. “MIA Form 1006-B” means the notice of premium increase form in Regulation .08 of this chapter that insurers may use for premium increases of greater than 15 percent for an entire policy. “Rating symbol” means a symbol assigned to a make or model of vehicle to reflect the loss experience of that make or model of vehicle. Reclassification. “Reclassification” means the placement of an insured by an insurer into a different classification based on one or more of the following criteria: Age, sex, or marital status of an insured; Accident or driving record of an insured; Usage, including mileage driven, of an insured vehicle; or Performance classification (high performance, intermediate performance, and sports type) of an insured vehicle. “Reclassification” does not include an offer of coverage through an affiliated insurer. Reduction in Coverage. “Reduction in coverage” includes: A reduction of any limit for liability coverage, uninsured motorist coverage, or personal injury protection if the limit is greater than the statutorily required minimum; An increase in the deductible for or elimination of comprehensive coverage; or A reduction or elimination of towing coverage, rental coverage, or any other coverage. “Reduction in coverage” does not include: The elimination of any coverage that is no longer offered by an insurer in accordance with its filed rating plan; or Any reduction or elimination of coverage made at the request of the insured. A notice of cancellation or nonrenewal sent by an insurer to its insured in accordance with Insurance Article, §§ 27-601.2 and 27-613, Annotated Code of Maryland, shall be sent by certified mail, delivered to an electronic mail address at which the insured has consented to receive mail, or posted to an electronic network with a separate notice to the insured directed to the electronic mail address at which the insured has consented to receive notice of the posting. In addition to the information required under §27-613, the notice shall include the following on the first page of the notice in 12-point bold type: IMPORTANT “Right of Protest” The “Right of Protest” does not apply to cancellation or nonrenewal due to nonpayment of premium. You may protest the action proposed by this notice as provided under Insurance Article, § 27-613, Annotated Code of Maryland by mail, facsimile, or electronically to the Insurance Commissioner. You must file your protest within thirty (30) days after this notice was sent to you in order for your protest to be considered by the Insurance Commissioner. If you send your protest by mail or facsimile you, the named insured, must sign a copy of this notice and send it to: Insurance Commissioner Maryland Insurance Administration 200 St. Paul Place Suite 2700 Baltimore, Maryland 21202 Fax Number 410-468-2307 You may file your protest electronically by uploading a copy at the following link: https://enterprise.insurance.maryland.gov/consumer/ConsumerPortalWelcomePage.aspx Your timely filed protest stays the action proposed by this notice. Accordingly, your insurance policy will remain in effect with the same coverages and premium that applied on the date this notice was sent to you until a determination is made by the Insurance Commissioner. In order to keep your policy in effect, however, you must timely pay any authorized premium due or becoming due before the determination is issued. The Insurance Commissioner will determine whether your protest has merit. You will then be notified in writing whether the proposed action is disallowed or your protest is dismissed. If the protest is dismissed, you then have the right, within thirty (30) days after the date on which the Commissioner sends you the determination, to request a hearing. If you request a hearing, you will be notified in writing of the time and place of the hearing at least ten (10) days before the hearing. The Commissioner shall order the insurer to pay reasonable attorney fees incurred by you for representation at the hearing if the Commissioner finds that: (1) 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 the Insurance Article, the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation or nonrenewal; and (2) 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. I protest the action proposed by the insurer. My reasons for protesting the action are: ______________________________________________________ Signature (Named Insured) – required if protest submitted by mail or fax: __________________________ Date: _____________ Insured’s Daytime Phone Number: __________________________ Insured’s Email Address: __________________________________ A notice of cancellation or nonrenewal sent by an insurer to its insured in accordance with Insurance Article, §§ 27-601.2 and 27-613, Annotated Code of Maryland, shall be sent by certified mail, delivered to an electronic mail address at which the insured has consented to receive mail, or posted to an electronic network with a separate notice to the insured directed to the electronic mail address at which the insured has consented to receive notice of the posting. In addition to the information required under §27-613, the notice shall include the following on the first page of the notice in 12-point bold type: IMPORTANT “Right of Protest” The “Right of Protest” does not apply to cancellation or nonrenewal due to nonpayment of premium. You may protest the action proposed by this notice as provided under Insurance Article, § 27-613, Annotated Code of Maryland by mail, facsimile, or electronically to the Insurance Commissioner. You must file your protest within thirty (30) days after this notice was sent to you in order for your protest to be considered by the Insurance Commissioner. If you send your protest by mail or facsimile you, the named insured, must sign a copy of this notice and send it to: Insurance Commissioner Maryland Insurance Administration 200 St. Paul Place Suite 2700 Baltimore, Maryland 21202 Fax Number 410-468-2307 You may file your protest electronically by uploading a copy at the following link: https://enterprise.insurance.maryland.gov/consumer/ConsumerPortalWelcomePage.aspx Your timely filed protest stays the action proposed by this notice. Accordingly, your insurance policy will remain in effect with the same coverages and premium that applied on the date this notice was sent to you until a determination is made by the Insurance Commissioner. In order to keep your policy in effect, however, you must timely pay any authorized premium due or becoming due before the determination is issued. The Insurance Commissioner will determine whether your protest has merit. You will then be notified in writing whether the proposed action is disallowed or your protest is dismissed. If the protest is dismissed, you then have the right, within thirty (30) days after the date on which the Commissioner sends you the determination, to request a hearing. If you request a hearing, you will be notified in writing of the time and place of the hearing at least ten (10) days before the hearing. The Commissioner shall order the insurer to pay reasonable attorney fees incurred by you for representation at the hearing if the Commissioner finds that: (1) 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 the Insurance Article, the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation or nonrenewal; and (2) 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. I protest the action proposed by the insurer. My reasons for protesting the action are: ______________________________________________________ Signature (Named Insured) – required if protest submitted by mail or fax: __________________________ Date: _____________ Insured’s Daytime Phone Number: __________________________ Insured’s Email Address: __________________________________ Scope. Except as provided in §A(2) of this regulation, this regulation applies to any increase in premium by an insurer. This regulation does not apply to an increase in premium due to: A general increase in premiums filed with the Commissioner if the increase in premium of the insured does not result from a reclassification of the insured; The addition of a motor vehicle to a policy; A change of motor vehicle covered by a policy; A change in vehicle usage that results in a change in driver class; A change of territory; A change in the age, sex, or marital status of an insured. An increase in coverage limits requested by the insured; The addition of a driver; The removal of a multi-policy discount; Any request by an insured that results in a change in coverage, decrease in deductible, or other change to a policy; The removal or reduction of a discount unless the discount is removed or reduced wholly or partly due to: An accident; A violation of the Maryland Vehicle Law or the vehicle law of another state; The claims history of the insured; A retiering of the insured; or The application of a program that measures the operation of an insured vehicle during the current policy period as referenced in Insurance Article, §11-318, Annotated Code of Maryland; The change or modification of a rating symbol; The recalculation of a premium by an insurer during the 45-day underwriting period in accordance with Insurance Article, §12-106(d)(2) and (3), Annotated Code of Maryland; or Any other cause for an increase in premium for which the Commissioner waives the notice requirement. Notice. Before an insurer may increase a premium, the insurer shall comply with the notice requirements of Insurance Article, §27-614, Annotated Code of Maryland. The insurer shall send a notice of premium increase to its insured using a first-class mail tracking method. Form of Notice. If an increase in premium is 15 percent or less for an entire policy, the insurer shall use MIA Form 1006-A in Regulation .07 of this chapter or a substantially similar form. If an increase in premium is greater than 15 percent for an entire policy, the insurer shall use MIA Form 1006-B in Regulation .08 of this chapter or a substantially similar form. If an insurer uses a form other than MIA Form 1006-A or MIA Form 1006-B, the insurer shall submit the form to the Commissioner for approval before the insurer may use the form. In order to be considered substantially similar to MIA Form 1006-A or MIA Form 1006-B, a form shall: At a minimum, contain the same information that is contained in MIA Form 1006-A or MIA Form 1006-B; Be printed in 12-point word processing point size in Arial, Universal, or another font that is as large or larger in size and spacing; and Contain the language of the “Right to Protest” section from MIA Form 1006-A or MIA Form 1006-B starting on the first page of the form. FORM ADD AT END OF CHAPTER FORM ADDED AT END OF CHAPTER Applicability to Binders. This regulation applies to a binder only if the binder has been in effect for at least 45 days. Contents of Statement. If an insurer cancels, refuses to renew, increases a premium for, or reduces coverage under a policy or binder of private passenger motor vehicle liability insurance, the statement of actual reason required by Insurance Article, §§27-613 or 27-614, Annotated Code of Maryland, shall include 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 Maryland vehicle law or the vehicle laws of another state: 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: The date that the claim that is the basis of the insurer's action occurred; and A description of each claim, such as: “Theft of vehicle on [date]”; “Vandalism of vehicle on [date]”; or “Towing claim on [date]”; or If the action of the insurer is due wholly or partly to a reason other than those described in §B(1)—(3) of this regulation or to a violation of the terms and conditions of the policy or the underwriting standards of the insurer, a description of the action of the insured that is the basis of the insurer's action, such as: “Insured loans the insured vehicle to an excluded driver”; or “Insured loans the insured vehicle to a non-listed driver”. In addition to the information required by §B of this regulation, with respect to a cancellation or nonrenewal, the statement of actual reason required by Insurance Article, §27-613, Annotated Code of Maryland, shall include a statement that the action by the insured that is the basis of the cancellation or nonrenewal violates the insurer's rating criteria or underwriting standards. Length of Retention. An insurer that provides a notice of cancellation, nonrenewal, premium increase, or reduction in coverage pursuant to Insurance Article, §27-613 or 27-614, Annotated Code of Maryland, and this chapter, shall retain a copy of the notice and its proof of mailing for at least 3 years from the effective date of the notice. Form of Records. An insurer may maintain a copy of a notice and the proof of mailing required to be retained by §A of this regulation in paper, photographic, microprocessed, magnetic, mechanical, electronic, digital, or any other medium, if the copy of the notice and proof of mailing are maintained in a manner that: Is clear and legible; Accurately reproduces the original document in its entirety, including any attachments to the document; Is capable of producing a clear and legible hard copy of the original document; and Preserves evidence of any signature contained on the document. Insurance Article, §§2-109, 11-318, 27-609, 27-613, and 27-614, Annotated Code of Maryland Effective date: July 1, 1979 (6:13 Md. R. 1125) Regulation .01 repealed and new Regulation .01 adopted effective February 4, 1991 (18:2 Md. R. 149) Regulation .03 amended and .04 adopted effective December 17, 1984 (11:25 Md. R. 2133) Regulation .03 amended effective February 4, 1991 (18:2 Md. R. 149) Regulation .04 amended effective February 4, 1991 (18:2 Md. R. 149) Chapter revised as an emergency provision effective October 1, 1997 (24:22 Md. R. 1550); revised permanently effective March 23, 1998 (25:6 Md. R. 487) Chapter recodified from COMAR 09.30.34 to COMAR 31.08.03 effective September 7, 1998 (25:18 Md. R. 1439) Chapter revised effective January 1, 2003 (29:20 Md. R. 1591) (This revision applies to all cancellations of, failure to renew, increase in premiums for, and reductions in coverage under a policy of motor vehicle liability insurance that are effective on or after January 1, 2003) Regulation .03B amended effective March 14, 2005 (32:5 Md. R. 582) Regulation .04 amended effective March 14, 2005 (32:5 Md. R. 582) Regulation .04 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1939); amended permanently effective March 13, 2006 (33:5 Md. R. 523) Regulation .05A amended effective March 14, 2005 (32:5 Md. R. 582) Regulation .07 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1939); amended permanently effective March 13, 2006 (33:5 Md. R. 523) Regulation .08 amended effective March 14, 2005 (32:5 Md. R. 582) Regulation .08 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1939); amended permanently effective March 13, 2006 (33:5 Md. R. 523) Regulation .09B amended effective March 14, 2005 (32:5 Md. R. 582) Regulation .10 repealed effective March 14, 2005 (32:5 Md. R. 582) Chapter revised as an emergency provision effective January 11, 2008 (35:3 Md. R. 287); revised permanently effective March 10, 2008 (35:5 Md. R. 642) Regulation .04 amended effective February 22, 2021 (48:4 Md. R. 178); November 15, 2021 (48:23 Md. R. 982); June 1, 2025 (52:3 Md. R. 161) Regulation .05 amended effective February 22, 2021 (48:4 Md. R. 178); November 15, 2021 (48:23 Md. R. 982); June 1, 2025 (52:3 Md. R. 161) Regulation .06A amended effective June 9, 2014 (41:11 Md. R. 606) Regulation .06A, B amended effective November 15, 2021 (48:23 Md. R. 982) Regulation .07 amended effective March 1, 2016 (42:22 Md. R. 1380); February 22, 2021 (48:4 Md. R. 178); June 1, 2025 (52:3 Md. R. 161) Regulation .08 amended effective March 1, 2016 (42:22 Md. R. 1380); February 22, 2021 (48:4 Md. R. 178); June 1, 2025 (52:3 Md. R. 161) Regulation .10 amended effective November 15, 2021 (48:23 Md. R. 982) On and after the effective date of these regulations each insurer issuing a motor vehicle liability insurance policy covering a Maryland resident shall include in the policy a provision regarding out-of-State insurance coverage at least as favorable to the insured as the following: "It is agreed that, subject to all the provisions of the policy except where modified herein, the following provision is added: “If, under the provisions of the motor vehicle financial law or the motor vehicle compulsory insurance law or any similar law of the District of Columbia or of any state or province, a nonresident is required to maintain insurance with respect to the operation or use of a motor vehicle in such jurisdiction and such insurance requirements are greater than the insurance provided by the policy, the limits of the company's liability and the kinds of coverage afforded by the policy shall be as set forth in such law, in lieu of the insurance otherwise provided by the policy, but only to the extent required by such law and only with respect to the operation or use of a motor vehicle in such jurisdiction; provided that the insurance under this provision shall be reduced to the extent that there is other valid and collectible insurance under this or any other motor vehicle insurance policy. In no event shall any person be entitled to receive duplicate payments for the same elements of loss.” On the effective date of these regulations each insurer which has a motor vehicle liability insurance policy covering a Maryland resident in force which does not have coverage as favorable to the insured as that in Regulation .01 of this chapter shall amend the policy to provide the coverage of Regulation .01 of this chapter. The insurer may make an additional charge for any coverage added under the requirements of this regulation subject to a rate filing approved by the Insurance Commissioner. Insurance Article, §§1-101(k), 2-108, 2-109, and 19-101(a) and (b), Title 11, Subtitle 2, and Title 19, Subtitle 5; Transportation Article, Title 17, Subtitle 1; Annotated Code of Maryland Effective date: Regulations .01 and .02 adopted as an emergency provision effective November 1, 1983 (10:22 Md. R. 1963); adopted permanently effective March 1, 1984 (11:1 Md. R. 43) Chapter recodified from COMAR 09.30.63 to COMAR 31.08.04 effective September 7, 1998 (25:18 Md. R. 1439) Often when a property and casualty policy is renewed, coverage is reduced or eliminated or deductibles are increased. There may also be automatic increases in policy limits pursuant to construction or inflation indices. The purpose of this chapter is to require all property and casualty insurers who intend to reduce or eliminate coverage, change a deductible or increase policy limits to clearly notify the policyholder of the action that has been taken. This regulation does not apply to: A change in coverage that is made at the request of the insured; A change in coverage to a commercial risk that uses the services of a risk manager, broker, or insurance adviser; A reduction in coverage for a policy of private passenger motor vehicle liability insurance that is subject to Insurance Article, §27-613, Annotated Code of Maryland; or The recalculation of a premium by an insurer during the 45-day underwriting period in accordance with Insurance Article, §12-106(d)(2) and (3), Annotated Code of Maryland. In this regulation, “delivery 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. An insurer shall provide notice to an insured in accordance with §§D and E of this regulation if the insurer proposes to: Eliminate or reduce coverage under a primary property or casualty policy, including a reduction in coverage caused by an increase in a deductible; or Automatically add or increase coverage under a primary property or casualty policy pursuant to policy terms that allow for any inflation or construction increases. An insurer that is required to provide notice under §C of this regulation shall include in the notice a clear and specific description of each change in coverage that identifies: The type of coverage that will be changed; and The dollar amount of the change in coverage. At least 45 days before the change in coverage is scheduled to take effect, the insurer shall send the notice to the insured by: First class mail; or Delivery by electronic means in accordance with Insurance Article, §27-601.2, Annotated Code of Maryland. If an insurer that proposes to eliminate or reduce coverage under a primary property or casualty policy fails to provide the notice that is required by §C of this regulation in accordance with the requirements of §§D and E of this regulation, the insurer may not implement the proposed elimination or reduction in coverage and may be subject to administrative action. Insurance Article, §§2-109, 4-113, and 27-216, and Title 11, Subtitle 2, Annotated Code of Maryland Effective date: July 30, 1981 (8:12 Md. R. 1060) Chapter recodified from COMAR 09.30.32 to COMAR 31.08.05 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .02A amended effective January 26, 2009 (36:2 Md. R. 102) Regulation .02 repealed and new Regulation .02 adopted effective November 11, 2013 (40:22 Md. R. 1878) Regulation .03 repealed effective November 11, 2013 (40:22 Md. R. 1878) The Nation-Wide Marine Definition which was approved by the National Association of Insurance Commissioners on June 12, 1953, is hereby adopted for use in Maryland, and all insurance policies issued or renewed on or after September 1, 1953, were and shall be subject to the provisions of the Nation-Wide Marine Definition. The purpose of this chapter is to describe the kinds of risks and coverages which may be classified or identified under State Insurance Laws as marine, inland marine, or transportation insurance, but does not include all of the kinds of risks and coverages which may be written, classified, or identified under marine, inland marine, or transportation insuring powers. This chapter may not be construed to mean that the kinds of risks and coverages are solely marine, inland marine, or transportation insurance in all instances. This chapter may not be construed to restrict or limit in any way the exercise of any insuring powers granted under charters and license whether used separately, in combination or otherwise. Marine or transportation policies, or both, may cover under the following conditions provided in this regulation. Imports. A shipment on consignment means property consigned and intrusted to a factor or agent to be held in his care, or under his control for sale for account of another or for exhibit or trial or approval or auction, and if not disposed of, to be returned. Imports on consignment may be covered wherever the property may be and without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation. Imports not on consignment in such places of storage as are usually employed by importers, provided the coverage of the issuing companies includes hazards of transportation. These policies may also include the same coverage in respect to property purchased on C. I. F. terms or spot purchases for inclusion with or in substitution for bona fide importations. An import, as a proper subject of marine or transportation insurance, shall be deemed to maintain its character as such so long as the property remains segregated in the original form or package in such a way that it can be identified and has not become incorporated and mixed with the general mass of property in the United States, and shall be deemed to have been completed when the property has been: Sold and delivered by the importer, factor or consignee; Removed from place of storage as described in §B(3) of this regulation and placed on sale as part of importer's stock in trade at a point of sale-distribution; or Delivered for manufacture, processing, or change in form to premises of the importer or of another used for these purposes. Exports. Exports may be covered whenever the property may be without restriction as to time, provided the coverage of the issuing companies includes hazards of transportation. An export, as a proper subject of marine or transportation insurance, shall be deemed to acquire its character as such when designated or while being prepared for export and retain that character unless diverted for domestic trade, and when so diverted, the provisions of §D of this regulation respecting domestic shipments shall apply, provided, however, that this provision does not apply to long established methods of insuring certain commodities, for example, cotton. Domestic Shipments. Domestic shipments on consignment, provided the coverage of the issuing companies includes hazards of transportation: Property shipped on consignment for sale or distribution, while in transit and not exceeding 120 days after arrival at consignee's premises or other place of storage or deposit; and Property shipped on consignment for exhibit, or trial, or approval or auction, while in transit, while in the custody of others and while being returned. Domestic shipments not on consignment, provided the coverage of the issuing companies includes hazards of transportation, beginning and ending within the United States, provided that these shipments may not be covered at manufacturing premises or after arrival at premises owned, leased, or operated by assured or purchaser, or for more than 90 days at other place of storage or deposit, except in premises of transportation companies or freight forwarders, when the storage is incident to transportation. Bridges, Tunnels, and Other Instrumentalities of Transportation and Communication. Bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents, and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, or civil commotion are the only hazards to be covered. Piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, or civil commotion. Other aids to navigation and transportation, including dry docks and marine railways, against all risks. The foregoing includes: Bridges, tunnels, other similar instrumentalities, unless fire, lightning, windstorm, sprinkler leakage, hail, explosion, earthquake, riot, or civil commotion are the only perils to be covered; Piers, wharves, docks, and slips, but excluding the risks of fire, lightning, windstorm, sprinkler leakage, hail, explosion, earthquake, riot, or civil commotion; Pipelines, including on-line propulsion, regulating and other equipment appurtenant to pipelines, but excluding all property at manufacturing, producing, refining, converting, treating, or conditioning plants; Power transmission and telephone and telegraph lines, excluding all property at generating, converting, or transforming stations, sub-stations, and exchanges; Radio and television communication equipment in commercial use as such including towers and antennae with auxiliary equipment, and appurtenant electrical operating and control apparatus but excluding buildings, their improvements and betterments, furniture and furnishings, and supplies held in storage in the building; Outdoor cranes, loading bridges, and similar equipment used to load, unload, and transport. Personal Property Floater Risks—Individuals. Tourists floater, personal effects floater policies. The personal property floater. Government service floaters. Personal fur floaters. Personal jewelry floaters. Wedding present floaters for not exceeding 90 days after the date of the wedding. Silverware floaters. Personal Property Floater Risks—General Coverage. Fine Arts Floaters, Stamp and Coin Floaters. To cover objects of art such as pictures, statuary, bronzes and antiques, rare manuscripts and books, articles of virtu, etc. Musical Instrument Floaters. Radios, televisions, record players, and combinations thereof are not deemed musical instruments. Radium Floaters. Physicians' and Surgeons' Instrument Floaters. These policies may include coverage of the furniture, fixtures, and tenant assured's interest in the improvements and betterments of buildings as are located in that portion of the premises occupied by the assured in the practice of his profession. Pattern and die floaters, excluding coverage on the owner's premises. Theatrical floaters, excluding buildings and their improvements and betterments, and furniture and fixtures that do not travel about with theatrical troupes. Film floaters, including builders' risk during the production and coverage on completed negatives and positives and sound records. Salesmen's samples floaters. Jewelers' block policies, including tenant assured's interest in improvements and betterments of buildings, furniture, fixtures, tools, machinery, patterns, molds, and dies. Exhibition policies on property while on exhibition and in transit to or from the exhibitions. Live animal floaters, covering wherever animals, wagons, and mobile equipment may be. Installation Risks. Installation risks, covering machinery and equipment including plumbing, heating, cooling and electrical systems (as distinguished from building materials) while in transit to place of installation and during the period of installation and testing. Coverage shall cease when whichever of the following first occurs: When the property is insured for the account of the seller or installer, when the interest of the insured ceases; or Not later than when the property has been accepted as satisfactory. Building materials (e.g., structural steel, lumber, bricks and mortar), while in transit to place of installation and after arrival thereat but the coverage shall terminate when the materials are installed and have become a physical part of the realty or when the seller's interest ceases, whichever first occurs. Mobile articles, machinery, and equipment floaters (excluding motor vehicles designed for highway use and auto homes, trailers, and semitrailers except when hauled by tractors not designed for highway use and snowplows constructed exclusively for highway use), covering identified property of a mobile or floating nature, not on sale or consignment, or in course of manufacture, which has come into the custody or control of parties who intend to use the property for the purpose for which it was manufactured or created. These policies do not cover furniture and fixtures not customarily used away from premises where the property is usually kept. Bailees. Property in transit to or from and in the custody of: Bleacheries, throwsters, fumigatories, dyers, cleaners, laundries, and similar bailees; Needleworkers; Other bailees (not owned, controlled, or operated by the bailor) for the purpose of performing work thereon (as distinguished from the making of a complete article) including the treatment of, or assemblage of property on the premises of bailees. These policies do not cover bailee's property at his premises. Installment Sales and Leased Property. Policies covering property sold under conditional contract of sale, partial payment contract, installment sales contract, or leased but excluding motor vehicles designed for highway use. These policies shall cover in transit but may not extend beyond the termination of the seller's or lessor's interest. This subsection is not intended to include machinery and equipment under certain “lease-back” contracts. Garment contractors floaters. Furriers or fur storer's customer's policies (that is, policies under which certificates or receipts are issued by furriers or fur storers) covering specified articles the property of customers. Accounts receivable policies, valuable papers and records policies. Cold storage locker plant policies, covering merchandise of customers consisting principally of meats, game, fish, poultry, fruit, vegetables, and property of a similar nature. Floor plan policies, covering property for sale while in possession of dealers under a floor plan or any similar plan under which the dealer borrows money from a bank or lending institution with which to pay the manufacturer, provided: That: The merchandise is specifically identifiable as encumbered to the bank or lending institution; The dealer's right to sell or otherwise dispose of the merchandise is conditioned upon its being released from encumbrance by the bank or lending institution; The policies cover in transit and do not extend beyond the termination of the dealer's interest. That the policies may not cover automobiles or motor vehicles; merchandise for which the dealer's collateral is the stock or inventory as distinguished from merchandise specifically identifiable as encumbered to the lending institution. Sign and Street Clock Policies, covering neon signs, automatic or mechanical signs, street clocks, while in use as such. Inland Marine Policies. The following policies covering property which, when sold to the ultimate purchaser, may be covered specifically, by the owner, under Inland Marine Policies: Musical Instrument Dealers' Policies, covering property consisting principally of musical instruments, and their accessories. Radios, televisions, record players and combinations thereof are not deemed musical instruments. Camera Dealers' Policies, covering property consisting principally of cameras and their accessories. Furrier's Dealers' Policies, covering property consisting principally of fur and fur garments. Equipment Dealers' Policies, covering mobile equipment consisting of binders, reapers, tractors, harvesters, harrows, tedders, and other similar agricultural equipment and accessories; construction equipment consisting of bulldozers, road scrapers, tractors, compressors, pneumatic tools, and similar equipment and accessories; but excluding motor vehicles designed for highway use. These policies may include coverage of tenant assured's interest in improvements and betterments of building and of furniture, fixtures, tools, machinery, patterns, molds, and dies. Wool Growers' Floaters. Domestic Bulk Liquids Policies, covering domestic bulk liquids stored in tanks provided the risks of fire and inherent explosion, windstorm, sprinkler leakage, earthquake, hail, explosion, riot, or civil commotion are excluded from the policy. Furniture Shipment Policies, covering furniture, fixtures, and equipment in bona fide course of shipment from one location to another location of the owner including in place of deposit incident to the transportation while awaiting determination or availability of final destination, in which event they shall cover at time of issuance transportation to or from the place of deposit but may not cover after delivery at destination. Unless otherwise permitted, nothing in the foregoing shall be construed to permit marine or transportation policies to cover: Storage of assured's merchandise, except as provided above; Merchandise in course of manufacture, the property of and on the premises of the manufacturer; Furniture and fixtures and improvements and betterments to buildings; Merchandise in a permanent location, sold under partial payment, contract of sale, or installment sales contract, which involves protection of the purchaser's interest after seller's interest ceases; Monies or securities, or both, in safes, vaults, safety deposit vaults, bank or assured's premises, except while in course of transportation; Risks of fire, windstorm, sprinkler leakage, earthquake, hail, explosion, riot, or civil commotion on buildings, structures, wharves, piers, docks, bulkheads, and sheds and other fixed real property on land or over water, except as provided above. Inland Marine Insurance. The following property, when owned and used for pleasure and not for business, hire, or other commercial use, shall be classified as Inland Marine Insurance: Outboard motors, including their equipment and appurtenances; Rowboats, canoes and boats not exceeding 16 feet in overall length, measured on the centerline and designed exclusively to be propelled by one or more outboard motors; Equipment and appurtenances, including boat carriers and trailers, used or designed for use with the above. Coverage of any of the property specified in §I(1) of this regulation in conjunction with vessels not falling within §I(1)(b) need not be classified as inland marine insurance. Insurance Article, §§1-101(y), (z), and (qq) and 2-109, Annotated Code of Maryland Effective date: September 1, 1953 Amended effective December 1, 1959; January 1, 1964; November 1, 1965; May 1, 1968 Chapter recodified from COMAR 09.30.14 to COMAR 31.08.06 effective September 7, 1998 (25:18 Md. R. 1439) Effective date: July 12, 1987 (14:14 Md. R. 1571) Chapter recodified from COMAR 09.30.72 to COMAR 31.08.07 effective September 7, 1998 (25:18 Md. R. 1439) Chapter repealed effective October 27, 2003 (30:21 Md. R. 1531) This chapter establishes requirements for liability insurance concerning lead hazards for affected property. In this chapter, the following terms have the meanings indicated. Terms Defined. Affected Property; “Affected property” means: A residential rental property constructed before 1950 that contains not more than one rental dwelling unit; A residential rental property that contains not more than one rental dwelling unit for which the owner makes an election under Environment Article, §6-803(a)(2), Annotated Code of Maryland; or An individual rental dwelling unit within a residential rental property constructed before 1950 that contains more than one rental dwelling unit, or a residential rental property that contains more than one rental dwelling unit for which the owner makes an election under Environment Article, §6-803(a)(2), Annotated Code of Maryland. “Affected property” does not include property exempted under the Environment Article, §6-803(b), Annotated Code of Maryland. “Authorized insurer” means an insurer that: Holds a certificate of authority in this State; Issues, or issues for delivery in this State, third-party bodily injury liability insurance under: Homeowners' coverage, Owners', landlords', and tenants' coverage, or Other premises liability coverage; and Is subject to regulation by the Maryland Insurance Administration. “Claim” means the notice provided to an insured that a person at risk has an elevated blood lead level under Environment Article, §6-828(b)(1), Annotated Code of Maryland, for the purpose of: Informing the insured that a person at risk has an elevated blood level; and Triggering the authorized insurer's duty to respond on behalf of the insured in accordance with Environment Article, Title 6, Subtitle 8, Part V, Annotated Code of Maryland, subject to reasonable notice provisions in a contract or insurance policy. “Person at risk” means a child younger than 6 years old or a pregnant woman who resides or regularly spends at least 24 hours per week in an affected property. “Rental dwelling unit” has the meaning stated in Environment Article, §6-801(t), Annotated Code of Maryland. A lead hazard exclusion contained in a contract of insurance issued or renewed on or after January 1, 1995, shall be waived with respect to an affected property which is covered under the policy to the extent of a qualified offer made or to be made under Environment Article, Title 6, Subtitle 8, Part V, Annotated Code of Maryland, if: The affected property is in compliance with the provisions of Environment Article, Title 6, Subtitle 8, Part III, Annotated Code of Maryland; Without regard to whether a change in occupancy has occurred, and at the election of the insured, the affected property: Passes the test for lead-contaminated dust under Environment Article, §6-816, Annotated Code of Maryland, or Has undergone the lead hazard reduction treatments and complies with the risk reduction standards under Environment Article, §6-815(a)(2), Annotated Code of Maryland; and The insured, under Environment Article, §6-818, Annotated Code of Maryland, submits to the authorized insurer a current verified report of an accredited inspector certifying that the affected property complies with the standards set forth in §B of this regulation. If coverage exists, an insurer shall defend all claims for which the insured is potentially liable when a claim is made against an insured. An authorized insurer providing lead hazard coverage under Insurance Article, §19-704, Annotated Code of Maryland: Shall offer the coverage without a deductible for the lead hazard coverage; and May offer the coverage with a deductible for the lead hazard coverage. When an insurer pays a claim on the policy with a deductible, the: Insurer shall pay the claim, including any applicable deductible; and Insured shall reimburse the insurer for any amount paid up to the limit of any applicable deductible. An insurer may cancel or not renew lead hazard coverage or reimpose an exclusion only if the: Insured fails to: Pay the applicable premium, Provide reasonable access to the affected property for purposes of inspection for the presence or condition of lead by the insurer or the insurer's designee, Comply with the terms or conditions of the policy, or Perform lead hazard reduction treatments as set forth in Environment Article, §6-815(a), Annotated Code of Maryland; or Affected property fails to comply or maintain compliance with the risk reduction standards under Environment Article, §6-815(a)(2), Annotated Code of Maryland. An insurer may cancel or not renew lead hazard coverage or reimpose an exclusion under §A(1)(d) or (2) of this regulation only if the insurer provides the insured with: Written notice that the insurer intends to cancel or not renew lead hazard coverage or intends to reimpose the exclusion; and An opportunity to correct the violation within 30 days after the mailing of the notice by the insurer. In addition to any other contractual requirement, the insured shall provide the insurer with a certification under Environment Article, §6-815(c) or 6-816, Annotated Code of Maryland, that the violation has been corrected and the property is in compliance with Environment Article, §6-815(a), Annotated Code of Maryland, within 30 days after the mailing of the notice by the insurer. Lead hazard coverage remains in effect if the violation is corrected and the property is in compliance with Environment Article, §6-815(a), Annotated Code of Maryland, within 30 days after the mailing of the notice by the insurer. Lead hazard coverage may be canceled or not renewed, or a lead hazard exclusion may be reimposed, on the 31st day after the mailing of the notice by the insurer if the insured does not provide the insurer with the certification required under §C of this regulation. The insurer shall include in its endorsement for lead hazard coverage that the lead hazard coverage may be canceled or not renewed pursuant to the conditions set forth in this regulation. This regulation does not preclude the insurer from canceling a policy for any other reason as allowed by Insurance Article, Annotated Code of Maryland. If an insurer intends to not renew or cancel lead hazard coverage, or intends to reimpose a lead hazard exclusion, pursuant to Regulation .06B of this chapter, which is not at the request of the insured, the insurer shall give the insured written notice of this change. This notice shall include, at a minimum, the following information: The insurer intends to not renew or cancel lead hazard coverage, or intends to reimpose a lead hazard exclusion; How the insured failed to perform lead hazard reduction treatments as set forth in Environment Article, §6-815(a), Annotated Code of Maryland, or how the affected property failed to comply or maintain compliance with the risk reduction standards under Environment Article, §6-815(a)(2), Annotated Code of Maryland; The date by which the insured shall provide to the insurer certification under Environment Article, §6-815(a) or 6-816, Annotated Code of Maryland, that the violation is corrected, which date should be 30 days after the mailing of the notice by the insurer; and The location of the affected property of which the insurer intends to not renew or cancel lead hazard coverage, or intends to reimpose a lead hazard exclusion. The insurer, or the insurer's authorized representative, shall mail or deliver to the insured or a person designated by the insured on the policy, the notice prescribed in §A of this regulation. If an insurer fails to provide the notice required by Regulation .04B of this chapter and §A of this regulation, the lead hazard coverage remains in effect. Insurance Article, §2-109 and Title 19, Subtitle 7, Annotated Code of Maryland Effective date: Regulations .01—.05 adopted as an emergency provision effective November 30, 1994 (21:26 Md. R. 2181) Regulations .01—.05 adopted effective March 13, 1995 (22:5 Md. R. 367) Chapter revised effective September 22, 1997 (24:19 Md. R. 1340) Chapter recodified from COMAR 09.31.08 to COMAR 31.08.08 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .07A amended effective January 1, 2018 (44:4 Md. R. 256) This chapter applies only to workers' compensation self-insurance groups (“group” or “groups”) organized pursuant to Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland, and not to groups organized pursuant to Labor and Employment Article, §9-402(a), Annotated Code of Maryland. All terms defined in Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland, which are used in this chapter have the same meaning as in Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland. Terms Defined. “Insolvent” or “insolvency” means the inability of a group to pay its outstanding lawful obligations as they mature in the regular course of business as may be shown either by an excess of its required reserves and other liabilities over its assets or by its not having sufficient assets to reinsure all of its outstanding liabilities after paying all accrued claims owed by it. “Net premium” means premium derived from standard premium adjusted by any advance premium discounts. “Standard premium” means the premium derived from the pure loss manual rate adjusted by the expense factors and by experience modification factors, but before advance premium discounts. The Basic Manual for Workers' Compensation and Employees Liability Insurance (2001 Edition), published by the National Council on Compensation Insurance (NCCI) is incorporated by reference. A group may be formed only by employers who are engaged in the same or a similar type of business or who are members of the same bona fide trade or professional association which has been in existence for not less than 5 years. For the first 5 years of its existence or until such time as the self-insured group's experience is such that its data becomes fully credible, a group shall classify employees as set forth in the Basic Manual for Workers' Compensation and Employees Liability Insurance (2001 Edition), published by the National Council on Compensation Insurance (NCCI). If the group submits justification to the Commissioner showing that it has fully credible data from which a change in classification could be supported from an actuarial perspective and what the deviation from the NCCI classification would be and the Commissioner approves same, then the group may use such classifications. During a group's first year of operation it shall have an annual premium of at least $500,000, all of which shall have been paid to the group not later than the end of the ninth month of the group's first year of operation. For each year after the first year of operation, the annual premium shall be at least $500,000 unless the Commissioner determines that a greater amount is required based on the Commissioner's examination of the group's annual statement of financial condition. Each group shall obtain and maintain a surety bond for the protection of group members and their employees in an amount not less than $500,000 unless the Commissioner specifies a different amount. The Commissioner may, in the Commissioner's discretion, waive the requirement of §A of this regulation and permit a group to deposit and maintain in trust with the State Treasurer, for the protection of group members, employees and creditors, cash or government securities of the type described in Insurance Article, §5-701(b), Annotated Code of Maryland, in an amount not less than the amount specified in §A of this regulation. Each administrator and service company shall obtain a fidelity bond in an amount not less than $100,000, and a performance bond in an amount not less than $50,000, before providing services to a workers' compensation self-insurance group. Each group shall maintain excess insurance coverage in an amount not less than $1,000,000 per occurrence and not less than $5,000,000 in the aggregate over a commercially available and reasonable attachment point subject to review of the Commissioner. A group shall send a copy of its excess insurance policy to the Commissioner in the following circumstances: Within 60 days of the renewal or replacement of an existing policy unless, within 90 days after its inception date, such policy will be provided to the Commissioner pursuant to §B(3) of this regulation; Within 60 days of an amendment to an existing policy unless, within 90 days after its inception date, such amended policy will be provided to the Commissioner pursuant to §B(3) of this regulation; Annually as provided in COMAR 31.08.09.13B; or Upon request of the Commissioner. The Commissioner may, in the Commissioner's discretion, take the following actions by notifying the group in writing: Increase the minimum amount of excess insurance coverage to assure adequacy of coverage for each group; and Require the group to obtain and maintain excess coverage with a specified attachment point upon consideration of, but not limited to, the following factors relating to the group: Size of group, that is, the number of members and premium volume; Financial condition of group; Group's risk versus surplus position; Group's loss development history; and The availability of reinsurance at specific attachment points at economically feasible rates. Instead of maintaining excess insurance coverage as set forth in §A of this regulation, a group may deposit and maintain in trust with the State Treasurer, cash or government securities of the type described in Insurance Article, §5-701(b), Annotated Code of Maryland, in an amount at least equal to the minimum excess insurance coverage required by §A of this regulation. A policy of excess insurance may not be recognized by the Commissioner unless the policy is: Issued by an insurer admitted to do business in Maryland unless the Commissioner, in his discretion, allows the coverage to be placed with an approved surplus lines carrier; and Not subject to cancellation or nonrenewal for any reason except nonpayment of premium except upon 45 days notice sent by certified mail to the group and to the Commissioner. A person or entity may not act as a workers' compensation self-insurance group except as so authorized by the Commissioner. Application for a certificate of authority shall be made to the Commissioner on a form prescribed by him and shall include a $25 nonrefundable filing fee. The application form shall be accompanied by the following: A list of the names of the members of the group, to include each member’s: Corporate name; Main business address; State of domicile; and Date upon which the member’s fiscal year ends; Proof of compliance with the requirements of these regulations; A copy of the group's articles of association, if any; A copy of agreements with the administrator and with any service company; A copy of the group's bylaws, which shall contain, at a minimum: A copy of or written description of the underwriting standards for acceptance and continuance in the group; A copy of or written description of the method for selecting the board of trustees and administrator of the group; A list of the members of the board of trustees and the term of office of the board of trustees; and A copy of or written description of the method for amending the group's bylaws; A copy of regulations adopted by the trustees, which shall be binding on the administrator and service company and which shall contain, at a minimum: A description of the manner in which excess funds and claim reserves shall be invested; A description of the frequency and extent of loss control and safety engineering services provided to members of the group; The size of the common claim fund; A schedule for the collection of premiums, including a definition of “delinquent premium”; A copy of or written description of the membership, admission, and expulsion procedures; A copy of or written description of the delineation of authority granted to the administrator, board of trustees, and service company; and A copy of the procedures for handling disputes regarding premium payments by members; A copy of the agreement between the group and each member securing the payment of workers' compensation benefits; A list of the initial board of trustees and administrator of the group; The address in this State where the books and records of the group will be maintained at all times; A financial statement on a form acceptable to the Commissioner showing the financial ability of the group to pay the workers' compensation obligations of its members; Proof of payment to the group by each member of not less than 25 percent of that member's first year estimated annual net premium on a date prescribed by the Commissioner; A statement outlining the guidelines used to determine the types of businesses eligible for membership in the group; Copies of executed agreements with each member assuming joint and several liability for obligations of the group in the event of insolvency of the Self-Insurers' Guaranty Fund; A description of the arrangements whether in-house or under contract, for handling claims; and A report on the financial condition of each member in a format acceptable to the Commissioner, based on each member’s most recent fiscal year-end data, which shall include the following information for each member: Total assets; Total liabilities and net worth; Total sales or revenues; Net profit; The member’s fiscal year-end date; and The basis for reporting the financial information, including whether the report was prepared by a certified public accountant and presented in conformity with generally accepted accounting principles. At the request of the Commissioner, the group shall submit additional financial information or financial statements for any or all members of the group. To obtain and maintain its certificate of authority, a group shall comply with the following requirements, as well as with any other requirements established by law or regulation: Provide notice to the Commissioner as soon as practicable of any change in the information required to be filed under §B or C of this regulation; and Maintain combined net assets of all members of at least $1,000,000 as shown by the most recent annual financial report of one or more members, each of which is prepared by an independent certified public accountant and in conformity with generally accepted accounting principles, and submitted on behalf of the group as a whole. Every group shall be deemed to have appointed the Commissioner its attorney to receive service of legal process issued against it in this State and this appointment shall be irrevocable, shall bind any successor in interest and shall remain in effect for so long as there is any obligation or liability of the group in this State for workers' compensation benefits. The Commissioner may not grant the request of any group to terminate its certificate of authority until the group has insured or reinsured all incurred workers' compensation obligations, including both known claims and expenses associated with them, with an authorized insurer under an agreement filed with and approved in writing by the Commissioner. The Commissioner may approve a merger of groups engaged in the same or a similar type of business only if the resulting group assumes in full all obligations of the merging groups. The Commissioner shall hold a hearing on the merger, pursuant to Insurance Article, §§2-203 and 2-210—2-214, Annotated Code of Maryland, if requested to do so by a member of either group. The Commissioner may make an examination of the affairs, transactions, records, and assets of any group as often as the Commissioner deems necessary to determine the group's financial solvency and for the protection of the interest of the people of Maryland, but the examination may not be less frequent than once every 5 years. Each group shall pay to the Commissioner an annual sum of $500 to be used to defray the cost of examinations. On or before 90 days following the end of a group's fiscal year, each group shall submit to the Commissioner a fiscal year-end audited financial report, prepared by an independent certified public accountant, in conformity with generally accepted accounting principles, which shall be on a form prescribed by the Commissioner which shall include, but not be limited to: Actuarially appropriate reserves for: Known claims and expenses associated with them; Claims incurred but not reported and expenses associated with them; Unearned premiums; and Bad debts, for which reserves shall be shown as liabilities; An actuarial opinion in compliance with the current edition of the Financial Analysis Handbook published by the National Association of Insurance Commissioners and given by a member of the American Academy of Actuaries or a person who has otherwise demonstrated his or her actuarial competence to the satisfaction of the Commissioner, regarding reserves for: Known claims and expenses associated with them; and Claims incurred but not reported and expenses associated with them. A copy of a group’s excess insurance policy for the current calendar year shall be submitted with the fiscal year-end audited financial report required by §A of this regulation. On or before 90 days following the end of a group's fiscal year, each group shall submit to the Commissioner a report, in a format acceptable to the Commissioner, regarding the financial condition of each member based on the member’s most recent fiscal year-end data, containing the information described in COMAR 31.08.09.08C(15). The report shall be signed by an executive officer of the group. Any monies for a fund year in excess of the amount necessary to fund all undiscounted losses and loss adjustment expenses for that fund year, actuarially determined by a member of the American Academy of Actuaries or a person who has otherwise demonstrated his or her actuarial competence to the satisfaction of the Commissioner, may be rebated to members of the group. A rebate for any fund year shall be paid only to those employers who remain participants in the group for the entire fund year. Instead of rebating excess monies, a group may temporarily suspend premium contributions for a period of time calculated to result in no excess for the succeeding fund year. No rebates or suspension of premium contributions shall be made when a group is insolvent or otherwise causes the group to be considered in a financially hazardous condition pursuant to §9-102 of the Insurance Article of the Annotated Code of Maryland. The following actions by a group are prohibited unfair trade practices and are violations of this regulation: Excluding an employer from a group for any reason based in whole or in part upon race, color, creed, sex, or blindness of the employer or its employees, or for any arbitrary, capricious, or unfairly discriminatory reason; Excluding an employer from a group by the application of standards which are not reasonably related to the group's economic and business purposes; and Requiring the existence of special conditions, facts, or situations as a condition to acceptance or continuance in a group of a particular employer in an arbitrary, capricious, or unfairly discriminatory manner based in whole or in part upon race, creed, color, sex, religion, national origin, place of residency, or blindness or other physical handicap or disability of the employer or its employees. If, after written notice and opportunity for a hearing, the Commissioner finds that a group has committed a prohibited unfair trade practice, as defined in this regulation, the Commissioner may exercise the powers conferred upon him by Insurance Article, §25-308, Annotated Code of Maryland. Insurance Article, §§2-108, 2-109, 9-102, Title 25, Subtitle 3, and 27-501, Annotated Code of Maryland Effective date: December 26, 1988 (15:26 Md. R. 2982) Chapter recodified from COMAR 09.30.73 to COMAR 31.08.09 effective September 7, 1998 (25:18 Md. R. 1439) Regulation .04 amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76) Regulation .05A, B amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76) Regulation .06A amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76) Chapter revised effective June 30, 2008 (35:13 Md. R. 1182) Regulation .06A amended effective January 1, 2018 (44:4 Md. R. 256) Regulation .07 amended effective January 1, 2018 (44:4 Md. R. 256) Regulation .08 amended effective January 1, 2018 (44:4 Md. R. 256) Regulation .13 amended effective January 1, 2018 (44:4 Md. R. 256) Regulation .14A amended effective January 1, 2018 (44:4 Md. R. 256) Regulation .14D adopted effective January 1, 2018 (44:4 Md. R. 256) In this chapter, the following terms have the meanings indicated. Terms Defined. “Amount paid to claimant” means the amount of claim settlements and claim awards. “Closed claim” means a claim filed with the Director of the Health Care Alternative Dispute Resolution Office under Courts and Judicial Proceedings Article, §3-2A-04, Annotated Code of Maryland, that has resulted in: A final judgment in any amount; A settlement in any amount; or A final disposition that does not result in payment on behalf of the insured. “Confidential information” means “confidential commercial information”, “confidential financial information”, and “financial information” as those terms are used in State Government Article, §10-617(d) and (f), Annotated Code of Maryland. “Financial information report” means an annual report as described in Regulation .02 of this chapter. “Insurer” means each insurer that provides professional liability insurance to a physician, nurse, dentist, podiatrist, optometrist, or chiropractor licensed under Health Occupations Article, Annotated Code of Maryland, or a hospital licensed under Health—General Article, Annotated Code of Maryland. “Neutral expert” has the meaning stated in Courts and Judicial Proceedings Article, §3-2A-09(d)(2), Annotated Code of Maryland. Scope. An insurer that issues professional liability insurance to health care providers in the State shall submit to the Commissioner a financial information report. Confidential Information. An insurer that submits a financial information report shall notify the Commissioner at the time of the submission of any information contained in the report that the insurer considers to be proprietary information. The Commissioner, in accordance with State Government Article, §10-617(d) and (f), Annotated Code of Maryland, shall deny inspection of any part of a report submitted under this chapter that the Commissioner determines contains confidential commercial information or confidential financial information. Filing Requirements. Insurers shall submit a financial information report by April 30 of each year for the preceding calendar year. The financial information report shall state, in the aggregate: The nature and cost of reinsurance for the insurer for the preceding calendar year; The claims experience, by category, of health care providers insured by the insurer during the preceding calendar year; The amount paid by the insurer under claim settlements and claim awards in the preceding calendar year; The amount of reserves for claims incurred and for incurred but unreported claims held by the insurer at the close of the preceding calendar year; and The number of claims settled by the insurer during the preceding calendar year that included structured settlement payments. Scope. Each insurer that issues professional liability insurance in the State shall complete and submit to the Commissioner a closed claim survey form, as described in Regulation .04 of this chapter, for each closed claim. Within 90 days after the end of each calendar quarter, an insurer shall complete and submit to the Commissioner the closed claim survey forms for claims closed by the insurer in that quarter. The closed claim survey forms shall be submitted to the Commissioner using an online survey tool made available by the Maryland Insurance Administration. A closed claim that is covered under a primary policy and one or more excess policies shall be reported only by the insurer that issued the primary policy. The insurer that issued the primary policy shall report the total amount, if any, paid with respect to the closed claim, including any amount paid under an excess policy and any amount paid by the health care provider subject to the claim or by a person other than an insurer on behalf of that health care provider. A closed claim survey form shall be completed and submitted only for a closed claim that arises out of an act or omission alleged to have occurred in the State or that was covered under a policy of professional liability insurance issued in the State. If the act, omission, or injury alleged in the closed claim allegedly occurred outside the State but was subject to resolution under the substantive laws of the State, a closed claim survey form is not to be submitted on that closed claim, unless the closed claim was covered under a policy of professional liability insurance issued in the State. A single closed claim survey form shall be filed for any closed claim that arises out of the same alleged acts or omissions of a health care provider and asserts the same injury, regardless of the number of claimants seeking damages on account of that injury. Any amounts identified on the closed claim survey form in connection with such a closed claim shall reflect all amounts paid to all claimants in that closed claim. If the insurer did not close any claims during a calendar quarter, the insurer need not submit a closed claim survey form but shall so notify the Commissioner in writing within 90 days after the end of the calendar quarter. The following information shall be reported on a closed claim survey form: Name of insurer; Name of insurer group; Claim file identification (ID); Name of person completing the form; Telephone number, including area code, of person completing the form; Date form completed; Date of injury; Date injury reported to insurer; Date claim closed; Whether the claim was previously reported; Age of injured person at time of injury; Gender of injured person at time of injury; Type of injury, such as wrongful death, permanent disability, or other bodily injury; Description of injury; Name of health facility where injury occurred; Type of medical professional liability policy, such as occurrence, claims made—basic, or claims made—tail; Type of patient, such as inpatient, emergency room outpatient, or other outpatient; Physician Insurance Services Office Incorporated (ISO) classification or equivalent classification; Type of health care provider, such as physician-no surgery, surgeon, psychiatrist and related specialties, nurse, nurse midwife, optometrist, pharmacist, chiropractor, podiatrist, psychologist, dentist, hospital, other health care facility, or nurse anesthetist; Physician and surgeon classification, including name of specialty; Health care provider name; Health care provider license number; Policy limits for each claim or medical incident; Policy limits for annual aggregate; If known, the facility, office, or county where the injury occurred; Whether the claim is a zero payment claim file; Full name and location of the court where the suit was filed and the case was tried; Case or docket number; Whether settlement was reached or award was made at one of the following stages: Arbitration; Mediation before suit was filed; After suit was filed, but before trial; During trial, but before court verdict; Court verdict; After verdict; or After appeal was filed; If settlement was reached or award was made by court verdict, whether the result was: Directed verdict for plaintiff; Directed verdict for defendant; Judgment notwithstanding the verdict for plaintiff; Judgment notwithstanding the verdict for defendant; Judgment for plaintiff; Judgment for defendant; Judgment for plaintiff, after appeal; Judgment for defendant, after appeal; or Any other; If there was no final judgment or settlement, the date of the final disposition; If there was no final judgment or settlement, the reason for the final disposition; If case did go to trial, whether the case was tried by a jury or tried by a judge; Total amount paid to the claimant; Amount paid by the insurer; Amount paid by the insured due to retention or deductible; If known, the amount paid by an excess carrier; If known, the amount paid by the insured due to settlement or award in excess of policy limits, not including deductible or retention amounts; If known, the amount paid by the insurer due to settlement or award in excess of policy limits, not including deductible or retention amounts; If known, the amount paid by other defendants or contributors; A summary of the occurrence from which the claim or action arose; A description of the misdiagnosis or alleged misdiagnosis made, if any, of the patient's actual condition; A description of the procedure giving rise to the claim; A description of the principal injury giving rise to the claim; The amount of past medical expenses claimed by the plaintiff; The amount of future medical expenses claimed by the plaintiff; The amount of past lost wages claimed by the plaintiff; The amount of future lost wages claimed by the plaintiff; The amount of noneconomic damages claimed by the plaintiff; The amount of other damages claimed by the plaintiff; Whether a structured settlement or periodic payment was used, and if so: The amount of immediate payment; The present value of the projected total future payout, that is, the price of the annuity, if purchased; The projected total future payout; and The cost of the structure; If a neutral expert was used, the findings of a neutral expert witness regarding future medical expenses; If a neutral expert was used, the findings of a neutral expert witness regarding future loss of earning; If case was tried to verdict: The amount awarded for past medical expenses; The amount awarded for future medical expenses; The amount awarded for past lost wages; The amount awarded for future lost wages; The amount awarded for noneconomic damages; and The amount awarded for other damages; The total allocated loss adjustment expense; Of the total allocated loss adjustment expense, the amount representing fees paid to defense counsel; Of the total allocated loss adjustment expense, the amount of expenses not included in the defense counsel fees; Whether there was a claim made for extra contractual damages; The amount claimed for extra contractual damages; Whether a suit was filed or claim was made for extra contractual damages; and Where the suit for the extra contractual damages claim was filed, including: The full name of the court where the suit was filed and the case was tried; The case number or docket number; Whether the claim settled or was tried; If tried, whether the trial was before a judge or jury; The amount paid for the extra contractual damages claim; and Whether the claim was previously reported to the Commissioner. Failure to report in accordance with this chapter may result in the imposition by the Commissioner of a civil penalty of up to $5,000. Insurance Article, §§4-401 and 4-405, Annotated Code of Maryland Effective date: May 22, 2006 (33:10 Md. R. 882) Regulation .02B amended effective January 1, 2018 (44:4 Md. R. 256) Effective date: Regulations .01—.07 adopted as an emergency provision effective October 17, 2007 (34:23 Md. R. 2022); emergency status extended at 35:9 Md. R. 896; emergency status extended at 35:17 Md. R. 1483 Regulations .01—.07 adopted effective October 20, 2008 (35:21 Md. R. 1828) Regulation .04A amended effective October 11, 2013 (40:22 Md. R. 1875) Regulation .05A, E amended effective October 11, 2013 (40:22 Md. R. 1875) Regulations .01—.07 repealed effective March 27, 2017 (44:6 Md. R. 328) The purpose of this chapter is to ensure that all authorized insurers that utilize temporary moratoriums on the writing of property and casualty insurance, the addition of endorsements for additional coverages, or other policy changes do so in a way that balances the interests of consumers, insurers, producers, and Maryland businesses. An insurer that intends to activate a temporary moratorium in response to an event or emergency listed in Regulation .03C of this chapter shall file its moratorium protocol with the Administration. The moratorium protocol shall: Be filed with the Commissioner as an underwriting standard or as a rating rule prior to its use; Be filed for all lines of insurance business to which the underwriting standard or rating rule applies; Identify the events or emergencies listed in Regulation .03C of this chapter that will trigger the activation of the temporary moratorium; and Identify the events that will result in the deactivation of the temporary moratorium. If a moratorium protocol under §B of this regulation is not filed with the Administration, a temporary moratorium as described in §A of this regulation is not valid and may subject the insurer to appropriate administrative action. An insurer shall design a temporary moratorium protocol to have the least impact on the conduct of insurance business throughout the State as reasonably possible. An insurer may not utilize the activation of a temporary moratorium to suspend the binding or writing of all of its lines of insurance business unless the suspension is reasonably related to the event or emergency that triggered the activation of the temporary moratorium. A temporary moratorium may not become effective until triggered by at least one of the following events or emergencies: The National Weather Service issues a hurricane or tropical storm watch, warning, or advisory for part of the State or the entire State. For the purpose of this subsection, the “National Weather Service” shall mean the National Weather Service, National Hurricane Center in Miami, Florida, and its regional National Weather Service Forecast Office covering a part of the State. The Governor or other governmental entity declares a state of emergency for part of the State or the entire State; The announcement of an evacuation, whether mandatory or voluntary, for part of the State or the entire State; The imposition of a special curfew for part of the State or the entire State; or The onset of an earthquake that is in an area within: 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter scale; or 100 miles of the epicenter of an earthquake that measures greater than 5.9 on the Richter scale. The temporary moratorium shall be limited to parts of the State: For which the National Weather Service has issued a hurricane or tropical storm watch, warning, or advisory; That are included within a government-declared state of emergency; That are under an evacuation order, whether mandatory or voluntary; That are under a special curfew; or That are within: 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter scale; or 100 miles of the epicenter of an earthquake that measures greater than 5.9 on the Richter scale. A temporary moratorium shall apply only to lines of insurance business that are reasonably expected to be affected by the events or emergencies listed in §C of this regulation that triggered the activation of the temporary moratorium. An insurer may not utilize the activation of a temporary moratorium to deny binding authority or coverage for the following transactions: Property insurance that was bound prior to the activation of the temporary moratorium; Automobile liability insurance purchased in connection with the purchase of a new or used motor vehicle by a consumer; Issuance of a policy for which the risk of loss is unrelated to the events or emergencies listed Regulation .03C of this chapter; or The purchase of additional coverages, endorsements, or limits for an existing policy during its renewal period, subject to any change becoming effective on the renewal date of the policy. For the purpose of section, “renewal period” means the 45-day period immediately prior to the renewal date of a policy. An insurer shall regularly monitor its activated temporary moratorium. A temporary moratorium that is activated based on an event listed under Regulation .03C(1) of this chapter may not continue for more than 24 hours after the termination of the last hurricane or tropical storm watch, warning, or advisory issued by the National Weather Service for part of the State or the entire State. Earthquake. A temporary moratorium that is activated because of an earthquake under Regulation .03C(5) of this chapter shall be deactivated no later than 72 hours after the onset of the earthquake. An aftershock that measures 5.0 or greater on the Richter scale that occurs during a temporary moratorium that was activated because of an earthquake under Regulation .03C(5) of this chapter may be treated as the onset of a new earthquake, resulting in the beginning of a new 72-hour period during which an insurer may continue to suspend binding authority. Except as otherwise provided under §G of this Regulation, a temporary moratorium that is activated based on a declaration of a State of Emergency by the Governor or other governmental entity for part of the State or the entire State ends at the expiration of the State of Emergency. Except as otherwise provided under §G of this Regulation, a temporary moratorium that is activated based on the announcement of an evacuation, whether mandatory or voluntary, for part of the State or the entire State ends at the expiration of the evacuation period. Except as otherwise provided under §G of this Regulation, a temporary moratorium that is activated based on the imposition of a special curfew for part of the State or the entire State ends at the expiration of the special curfew. The Commissioner may order the end of a temporary moratorium before the expiration of a State of Emergency, evacuation period, or special curfew, if the Commissioner determines that there is no longer a need for the temporary moratorium for purposes of enforcing the Insurance Article. Insurance Article, §§2-108, 2-109, 19-107, and 27-501, Annotated Code of Maryland Effective date: March 22, 2010 (37:6 Md. R. 480) Regulation .02 amended effective April 14, 2014 (41:7 Md. R. 423) Regulation .03 amended effective April 14, 2014 (41:7 Md. R. 423) Regulation .04 amended effective April 14, 2014 (41:7 Md. R. 423) Regulation .05 amended effective April 14, 2014 (41:7 Md. R. 423) Regulation .06 amended effective April 14, 2014 (41:7 Md. R. 423) Regulation .06 repealed effective November 24, 2016 (43:23 Md. R. 1281) The purpose of this chapter is to implement Insurance Article, §§19-209 and 19-209.1, Annotated Code of Maryland. This chapter applies to all property and casualty insurers authorized to write homeowner’s insurance policies in Maryland. This chapter applies to any policy of homeowner’s insurance that provides a percentage deductible. In this chapter, the following terms have the meanings indicated. Terms Defined. “Delivery 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. Homeowner’s Insurance. “Homeowner’s insurance” means insurance for residential property that provides one or more of the following coverages: Fire; Extended coverage; Vandalism and malicious mischief; Burglary; Theft; or Personal liability. “Homeowner’s insurance” does not include: An umbrella policy; or 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. “Hurricane warning” means a warning by the National Hurricane Center of the National Weather Service that hurricane conditions are expected in any part of the State. “National Hurricane Center of the National Weather Service” includes: The National Hurricane Center in Miami, Florida; and A regional National Weather Service Forecast Office covering any part of the State. “Percentage deductible” means a deductible equal to a percentage of the Coverage A — Dwelling Limit of a homeowner’s insurance policy. Residential Property. “Residential property” means property that is used primarily as a residence. “Residential property” includes: A residence written on a personal farmowner’s policy form; A condominium unit; A mobile home; and A multiunit building if one of the units is occupied by the owner of the building and not more than three units are occupied by tenants. “Residential property” does not include a boat. “Underwriting standards” means: Underwriting manuals, including any amendments or supplements to underwriting manuals; and The generally accepted practices of an insurer contained in written underwriting instructions, guidelines, and rules that the insurer provides for use by its underwriters and insurance producers as standards for acceptance of risk. An insurer may not adopt or amend an underwriting standard that requires a hurricane percentage deductible that exceeds 5 percent unless the insurer has filed the underwriting standard or the amendment to the underwriting standard with the Commissioner. If an insurer withdraws an underwriting standard that requires a percentage deductible that exceeds 5 percent, the insurer shall notify the Commissioner in writing within 10 days of the withdrawal. An insurer that makes a filing under §A of this regulation shall include the following information in the filing: The insurer’s NAIC number; A copy of the underwriting standard the insurer proposes to adopt, the amendment to an underwriting standard currently in use, or notice of withdrawal of an underwriting standard currently in use; The date on which the insurer intends to adopt, amend, or withdraw the underwriting standard; All of the data on which the insurer relied in developing the proposed underwriting standard, amendment to the underwriting standard, or withdrawal of the underwriting standard; A copy of each page in the insurer’s rating manual that relates to the underwriting standard; A copy of any underwriting standard with a percentage deductible currently in use by the insurer for homeowner’s insurance, including any SERFF tracking number associated with the underwriting standard, or a statement that the insurer does not currently have an underwriting standard with a percentage deductible for homeowner’s insurance; and Any other information the Commissioner considers necessary. Insurance Article, §§2-109, 19-209, and 19-209.1, Annotated Code of Maryland Effective date: June 23, 2014 (41:12 Md. R. 669) Chapter revised effective April 10, 2017 (44:7 Md. R. 357) This chapter does not apply to loss that is caused by a flood. In this chapter, the following terms have the meanings indicated. Terms Defined. “Backs up” means reverses course, discharges, escapes, overfills, or overflows. “Drain” means a line, pipe, or any other part of a system that: Is located inside or outside of a dwelling; and Drains water away from the dwelling. “Dwelling coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to: The dwelling of the policyholder; and Any structure of the policyholder that is attached to the dwelling. Flood. “Flood” means a general and temporary condition of partial or complete inundation of normally dry land areas from: The overflow of inland or tidal waters; The unusual and rapid accumulation or runoff of surface water from any source; or Mudslides that are proximately caused by the unusual and rapid accumulation or runoff of surface water from any source and are similar to a river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water and deposited along the path of the current. “Flood” includes a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters due to the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by: Waves or currents of water exceeding anticipated cyclical levels or suddenly caused by an unusually high water level in a natural body of water, accompanied by a severe storm; An unanticipated force of nature, such as a flash flood or abnormal tidal surge; or A similarly unusual and unforeseeable event. Homeowner’s Insurance. “Homeowner’s insurance” means insurance for residential property provided under: A homeowner’s policy; A condominium owner’s policy; A mobile homeowner’s policy; A renter’s policy; or A noncommercial farm owner’s policy. “Homeowner’s insurance” does not include an umbrella policy. “Loss-of-use coverage” means coverage under a policy of homeowner’s insurance for loss of use of the policyholder’s dwelling. “Other structure coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to a structure of the policyholder that is on the same property as the policyholder’s dwelling, but is not attached to the dwelling. “Personal property coverage” means coverage under a policy of homeowner’s insurance for losses resulting from damage to personal property that is owned by the policyholder or used by the policyholder. “Sewer” means an underground conduit used to carry off water and waste matter. “Water” includes sewage and other waterborne waste matter. An insurer that issues, sells, or delivers a policy of homeowner’s insurance in the State shall at the time of application and renewal offer in writing to provide coverage for loss that: Is caused by or results from water that backs up into a dwelling or other covered structure through a sewer or drain, regardless of the origin of the water; and Is not caused by the negligence of the insured. An insurer that is required to offer coverage under §A of this regulation shall offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with limits equal to the limits of liability for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance. If an insurer makes an offer of coverage that meets the requirements of §B of this regulation, the insurer also may offer the coverage for loss that is caused by or results from water that backs up through a sewer or drain with: Limits that are less than the limits for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage under the policy of homeowner’s insurance; or A combined single limit for dwelling coverage, other structure coverage, personal property coverage, and loss-of-use coverage that is equal to or less than the highest limit of liability under the policy of homeowner’s insurance. The offer of coverage required by §A of this regulation may be met by using the form under COMAR 31.08.18.02. Insurance Article, §§2-109, 19-202, and 19-216(d), Annotated Code of Maryland Effective date: January 1, 2015 (41:21 Md. R. 1261) Regulation .03D adopted effective November 6, 2017 (44:22 Md. R. 1038) This chapter applies only to a binder or policy, other than a renewal policy, of personal insurance, commercial property insurance, or commercial liability insurance. In this chapter, the following terms have the meanings indicated. Terms Defined. “Delivery 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. Material Risk Factor. “Material risk factor” means a risk factor that: Was incorrectly recorded or not disclosed by the insured in an application for insurance; Was in existence on the date of the application; and Modifies the premium charged on the policy or binder in accordance with the rates and supplementary rating information filed by the insurer under Insurance Article, Title 11, Subtitle 3, Annotated Code of Maryland. “Material risk factor” does not include: Information that constitutes a material misrepresentation; or A change initiated by an insured, including any request by the insured that results in a change in coverage, change in deductible, or other change to a policy. “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. A binder or policy is subject to a 45-day underwriting period beginning on the effective date of coverage. With respect to an account that contains multiple binders or policies, each binder or policy in the account is subject to a separate 45-day underwriting period beginning on the effective date of coverage for that binder or policy. If an insurer discovers a material risk factor during the underwriting period, the insurer shall recalculate the premium for the policy or binder based on the material risk factor as long as the risk continues to meet the underwriting standards of the insurer in accordance with the rates and supplementary rating information filed under Insurance Article, Title 11, Subtitle 3, Annotated Code of Maryland. Notice of Recalculated Premium. The amount of the recalculated premium; The reason for the increase or reduction in the premium in accordance with §C of this regulation; and That the insured has the right to terminate the policy and receive a pro rata refund of any premium paid by notifying the insurer of the termination. Reason for Increase or Reduction in Premium. In stating the reasons for the increase or reduction in the premium, the insurer shall identify each material risk factor that was discovered during the 45-day underwriting period and, Examples of acceptable reasons required by §C(1) of this regulation include, but are not limited to: Premium recalculated due to [NAME OF DRIVER] moving violation on [DATE OF EVENT]; Safe driver discount removed due to [NAME OF DRIVER] at fault loss on [DATE OF EVENT]; [NAME OF DRIVER] was not listed on the application. Policy must be re-rated or signed driver exclusion must be completed; Applicant does not currently have an automobile policy with the Company, Multi Policy Discount removed; Policy was issued without the auto/home discount; or Premium recalculated due to lack of a central alarm system. The use of generalized phrases such as “change in prior insurance status,” “change in vehicle symbol,” or “change in protection code” does not meet the requirements of §C(1) of this regulation. Form of Notice. An insurer that is required to provide a notice of recalculated premium under §B of this regulation shall provide the notice to an insured on: The form contained in Regulation .05 of this chapter; or A form that is filed with and approved by the Commissioner. If an insurer utilizes a form other than the one contained in Regulation .05 of this chapter, the form shall: Include a statement that the insured may contact the insurer or, if applicable, the insured’s insurance producer for additional information concerning the reason for the insurer’s action and how the action affected the premium charged; and Provide the telephone number for the insurer that the insured may use to obtain additional information about the insurer’s action, or, in lieu of the insurer’s contact information, provide the telephone number for the insured’s insurance producer. If an insurer includes a notice of recalculated premium on a form that contains other information, the insurer shall: Place the notice of recalculated premium in a conspicuous location on the form; and Print the text of the notice of recalculated premium in at least 12-point type. Delivery of Notice. An insurer that is required to provide a written notice under §B of this regulation shall send the notice to the policyholder not later than the end of the 45-day underwriting period by: First-class mail tracking method; or Delivery by electronic means in accordance with Insurance Article, §27-601.2, Annotated Code of Maryland. An insurer may send the notice required under §B of this regulation to the policyholder with the policy, declarations page, or any other document that the insurer sends to the policyholder. FORM AT END OF CHAPTER An insurer may cancel a binder or policy during the 45-day underwriting period if the risk does not meet the underwriting standards of the insurer. Cancellation for Reason Other than Nonpayment of Premium. Except as provided in §B(2) of this regulation, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall: Provide the insured with a written notice of cancellation that clearly and specifically states the insurer’s actual reason for the cancellation; and Send the notice of cancellation to the named insured’s last known address by a first- class mail tracking method not less than 15 days before the effective date of the cancellation. With respect to workers’ compensation insurance, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall: Provide the insured with a written notice of cancellation that clearly and specifically states the insurer’s actual reason for the cancellation; Send the notice of cancellation to the named insured’s last known address by a first-class mail tracking method not less than 15 days before the effective date of the cancellation; and File a copy of the notice of cancellation with the designee of the Workers’ Compensation Commission. Cancellation for Nonpayment of Premium. An insurer that cancels a policy or binder under this regulation for nonpayment of premium shall: Provide the insured with a written notice of cancellation that states the insurer’s intent to cancel the policy or binder for nonpayment of premium; and Send the notice of cancellation to the named insured’s last known address by a first-class mail tracking method not less than 10 days before the effective date of the cancellation. In the case of a policy or binder of workers’ compensation insurance, the insurer shall comply with the requirements of §C(1) of this regulation and shall file a copy of the notice of cancellation with the designee of the Workers’ Compensation Commission. If an insured terminates a policy following receipt of a notice of recalculated premium, the insurer shall refund to the insured any premium paid by the insured on a pro rata basis. At the time of application or when a binder or policy is issued, an insurer shall provide written notice of its ability to cancel a binder or policy or recalculate the premium from the effective date of the policy during the underwriting period. Nothing in this chapter prohibits an insurer from: Conducting an audit in accordance with the provisions of a policy; or Charging and collecting the appropriate premium based on the results of the audit in accordance with the rates and supplementary rating information filed by the insurer under Insurance Article, Title 11, Subtitle 3, Annotated Code of Maryland. Insurance Article, §§2-109, 11-205, 11-306, 12-106, and 19-406, Annotated Code of Maryland Effective date: June 9, 2014 (41:11 Md. R. 606) Regulation .04 amended effective January 14, 2019 (46:1 Md. R. 13) Regulation .05 amended effective January 14, 2019 (46:1 Md. R. 13) Regulation .06B, C amended effective November 6, 2017 (44:22 Md. R. 1038) The purpose of this chapter is to ensure that an insurer properly notifies the named insured and insurance producer of the amount of a policy’s renewal and expiring premiums in accordance with Insurance Article, §27-607, Annotated Code of Maryland. This chapter applies to all 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. In this chapter the following terms have the meanings indicated. Terms Defined. “Expiring premium” means: The dollar amount of the premium charged at the beginning of the expiring policy term; and If different, the dollar amount of the premium: Charged at the time the insurer issues the notice required by Regulation .04 of this chapter; and Stated on an annualized basis. “Insurer” means an authorized property or casualty insurer that issues or delivers a policy of personal insurance in the State or a policy issued under the Maryland Property Insurance Availability Act or any similar act instituted to ensure the availability of property insurance. “Maryland Property Insurance Availability Act” means insurance described in Insurance Article, Title 25, Subtitle 4, Annotated Code of Maryland. “Personal insurance” means a policy of property insurance or casualty insurance as defined by Insurance Article, §27-601(c), Annotated Code of Maryland. “Renewal premium” means the dollar amount of the premium to be charged for the next policy term. At least 45 days prior to the renewal date of a policy subject to this chapter, an insurer shall send written notice to the named insured and the insurance producer of the policy. The notice required under §A of this regulation: Shall be clear and specific; Shall state the dollar amount or amounts of the policy’s expiring premium; Shall state the dollar amount of the policy’s renewal premium; Shall be sent either by first class mail or delivered by electronic means pursuant to the requirements of Insurance Article, §27-601.2, Annotated Code of Maryland; and May be sent together with the renewal policy and may be included on the declarations page of the renewal policy. Penalties for violations of these regulations shall be assessed in accordance with Insurance Article, §§4-113 and 27-612, Annotated Code of Maryland. Insurance Article, §§2-109, 4-113, 27-607, and 27-612, Annotated Code of Maryland Effective date: January 1, 2015 (41:21 Md. R. 1261) This chapter applies only to policies of commercial insurance. This chapter does not apply to: A policy in effect for 45 days or less, as provided in Insurance Article, §12-106, Annotated Code of Maryland; or A policy issued to an exempt commercial policyholder under Insurance Article, §11-206, Annotated Code of Maryland, if the policy provides for written notice of not less than 30 days of the insurer’s intent to cancel or refusal to renew. In this chapter the following term has the meaning indicated. Commercial Insurance Defined. “Commercial insurance” means property insurance or casualty insurance: Issued to an individual, 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: A policy issued by the Maryland Automobile Insurance Fund; A policy issued by the Joint Insurance Association; Workers’ compensation insurance; or Title Insurance. Whenever an insurer cancels or refuses to renew a policy of commercial insurance for a reason other than nonpayment of premium, the insurer shall provide to the named insured a written statement of the actual reason for the cancellation or refusal to renew. An insurer shall include in a statement of actual reason: An offer to provide additional information in support of the proposed action on the written request of the insured; A notice that if the insured would like additional information in support of the proposed action, the insured is required to send the written request for additional information within 30 days after the date of the statement of actual reason; and An address for the insured to submit the written request for additional information. Insurance Article, §§2-109 and 27-605, Annotated Code of Maryland Effective date: March 17, 2014 (41:5 Md. R. 348) The purpose of this chapter is to provide the form that insurers may use to comply with the requirements of Insurance Article, §§19-202, 19-205(a)(4)(vii), 19-210(f), 19-214(a), 19-216, and 27-501(n)(2), Annotated Code of Maryland. Form located at end of chapter This chapter does not create a private cause of action for a violation of this chapter. Insurance Article, §19-216, Annotated Code of Maryland Effective date: November 6, 2017 (44:22 Md. R. 1038)