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)