# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 08 — Property and Casualty Insurance

### Chapter 03 — Notices of Cancellation, Nonrenewal, Premium Increase, and Reduction in Coverage

#### Regulation .09 Statement of Actual Reason.

*COMAR 31.08.03.09*

A. Applicability to Binders. This regulation applies to a binder only if the binder has been in effect for at least 45 days.

B. 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:

  (1) If the action of the insurer is due wholly or partly to an accident:

    (a) The name of the driver;

    (b) The date of the accident; and

    (c) If fault is a material factor for the insurer's action, a statement that the driver was at fault.

  (2) 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:

    (a) The name of the driver;

    (b) The date of the violation; and

    (c) A description of the violation.

  (3) If the action of the insurer is due wholly or partly to the claims history of an insured:

    (a) The date that the claim that is the basis of the insurer's action occurred; and

    (b) A description of each claim, such as:

      (i) “Theft of vehicle on [date]”;

      (ii) “Vandalism of vehicle on [date]”; or

      (iii) “Towing claim on [date]”; or

  (4) 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:

    (a) “Insured loans the insured vehicle to an excluded driver”; or

    (b) “Insured loans the insured vehicle to a non-listed driver”.

C. 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.