Chapter 01. Antiarson Application
Regulation .01 General—Applicability.LinkCopy Citation
A.
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.
B.
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.
C.
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.
D.
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.
E.
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.
Regulation .02 Antiarson Application.LinkCopy Citation
A.
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.
B.
The insurer or producer may not bind the risk or issue the coverage unless the applicant returns a completed and signed antiarson application.
C.
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.
D.
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:
(1)
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
(2)
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.
E.
Changes In Information Given In Antiarson Application.
(1)
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.
(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.
Regulation .03 Standard Antiarson Application—Part 1.LinkCopy Citation
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 [ ]
A.
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.
1.
Purchase Information: Date _________________ Price $_______
2.
Estimated Replacement Cost $_____________________________
3.
For rental properties, indicate the Annual Rental Income
4.
Check the valuation method used to establish the amount of insurance:
5.
Who determined the value?________________________________
B.
UNDERWRITING INFORMATION: If the answer to any of the following is “yes”, complete Part 2.
1.
Is the applicant other than an individual or sole proprietorship?
2.
Are there any taxes unpaid or overdue for 1 or more years?
3.
Are there any tax liens against the property or business?
4.
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?
5.
Is the mortgagee other than a federal or State chartered lending institution?
6.
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?
7.
Is any portion of the building or any apartment vacant, unoccupied, or used on a seasonal basis?
8.
Has any coverage or policy on this property been declined, cancelled, or nonrenewed in the last 3 years?
9.
Is there any other insurance in force or to be secured on this property?
10.
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
Regulation .04 Standard Antiarson Application—Part 2.LinkCopy Citation
STATE OF MARYLAND
STANDARD ANTIARSON APPLICATION
PART 2
A.
Ownership Information:
1.
Check the type of ownership for the insured property:
2.
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.
3.
Have any of the owners listed above:
a.
Within the past ten years, claimed any fire loss for the destruction of 25% or more of any insured property?
b.
Been convicted of any crimes?
4.
Mortgage Payments:
5.
Unrecorded Mortgages:
6.
Taxes (include Real Estate, Water, Sewer, Special Privilege, etc.):
7.
Is the building for sale?
B.
Vacancy.
1.
Indicate seasonal period (if any) when building is unused:
2.
For apartment buildings indicate:
3.
For other buildings indicate percent vacant:_____
4.
For all buildings indicate the following:
a.
Reason for vacancy/unoccupancy:______________
b.
Anticipated date of occupancy:_______________
c.
If the building is vacant or unoccupied, indicate how it is protected from unauthorized entry_________________
________________________________________________________
C.
Additional Property Description:
1.
Is water, sewage, electricity, or heat out of service?
2.
Is there unrepaired damage or have items been stripped from the building?
3.
Are any violations outstanding with regard to the Fire, Building or Health Code?
4.
Is there a governmental order to vacate or destroy the building or has the building been classified uninhabitable or structurally unsafe?
D.
Other Policies:
1.
List all other policies which insure this property against fire loss:
2.
List all real estate transactions during last 3 years involving this property:
Chapter annotations
Authority: Insurance Article, §2-109 and Title 19, Subtitle 3, Annotated Code of Maryland
History: Effective date: June 1, 1983 (10:6 Md. R. 556)
History: Chapter recodified from COMAR 09.30.60 to COMAR 31.08.01effective September 7, 1998 (25:18 Md. R. 1439)
History: Regulation .02A—C amended effective January 1, 2018 (44:4 Md. R. 256)