Chapter 08. Lead Poisoning
Regulation .01 Scope.LinkCopy Citation
This chapter establishes requirements for liability insurance concerning lead hazards for affected property.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
Affected Property;
(a)
“Affected property” means:
(i)
A residential rental property constructed before 1950 that contains not more than one rental dwelling unit;
(ii)
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
(iii)
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.
(b)
“Affected property” does not include property exempted under the Environment Article, §6-803(b), Annotated Code of Maryland.
(2)
“Authorized insurer” means an insurer that:
(a)
Holds a certificate of authority in this State;
(b)
Issues, or issues for delivery in this State, third-party bodily injury liability insurance under:
(i)
Homeowners' coverage,
(ii)
Owners', landlords', and tenants' coverage, or
(iii)
Other premises liability coverage; and
(c)
Is subject to regulation by the Maryland Insurance Administration.
(3)
“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:
(a)
Informing the insured that a person at risk has an elevated blood level; and
(b)
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.
(4)
“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.
(5)
“Rental dwelling unit” has the meaning stated in Environment Article, §6-801(t), Annotated Code of Maryland.
Regulation .03 Coverage.LinkCopy Citation
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:
A.
The affected property is in compliance with the provisions of Environment Article, Title 6, Subtitle 8, Part III, Annotated Code of Maryland;
B.
Without regard to whether a change in occupancy has occurred, and at the election of the insured, the affected property:
(1)
Passes the test for lead-contaminated dust under Environment Article, §6-816, Annotated Code of Maryland, or
(2)
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
C.
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.
Regulation .04 Claim.LinkCopy Citation
If coverage exists, an insurer shall defend all claims for which the insured is potentially liable when a claim is made against an insured.
Regulation .05 Deductible.LinkCopy Citation
A.
An authorized insurer providing lead hazard coverage under Insurance Article, §19-704, Annotated Code of Maryland:
(1)
Shall offer the coverage without a deductible for the lead hazard coverage; and
(2)
May offer the coverage with a deductible for the lead hazard coverage.
B.
When an insurer pays a claim on the policy with a deductible, the:
(1)
Insurer shall pay the claim, including any applicable deductible; and
(2)
Insured shall reimburse the insurer for any amount paid up to the limit of any applicable deductible.
Regulation .06 Cancellation, Nonrenewal, or Reimposition of an Exclusion.LinkCopy Citation
A.
An insurer may cancel or not renew lead hazard coverage or reimpose an exclusion only if the:
(1)
Insured fails to:
(a)
Pay the applicable premium,
(b)
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,
(c)
Comply with the terms or conditions of the policy, or
(d)
Perform lead hazard reduction treatments as set forth in Environment Article, §6-815(a), Annotated Code of Maryland; or
(2)
Affected property fails to comply or maintain compliance with the risk reduction standards under Environment Article, §6-815(a)(2), Annotated Code of Maryland.
B.
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:
(1)
Written notice that the insurer intends to cancel or not renew lead hazard coverage or intends to reimpose the exclusion; and
(2)
An opportunity to correct the violation within 30 days after the mailing of the notice by the insurer.
C.
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.
D.
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.
E.
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.
F.
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.
G.
This regulation does not preclude the insurer from canceling a policy for any other reason as allowed by Insurance Article, Annotated Code of Maryland.
Regulation .07 Notice of Cancellation, Nonrenewal, or Reimposition of an Exclusion.LinkCopy Citation
A.
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:
(1)
The insurer intends to not renew or cancel lead hazard coverage, or intends to reimpose a lead hazard exclusion;
(2)
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;
(3)
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
(4)
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.
B.
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.
C.
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.
Chapter annotations
Authority: Insurance Article, §2-109 and Title 19, Subtitle 7, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.05 adopted as an emergency provision effective November 30, 1994 (21:26 Md. R. 2181)
History: Regulations .01—.05 adopted effective March 13, 1995 (22:5 Md. R. 367)
History: Chapter revised effective September 22, 1997 (24:19 Md. R. 1340)
History: Chapter recodified from COMAR 09.31.08 to COMAR 31.08.08 effective September 7, 1998 (25:18 Md. R. 1439)
History: Regulation .07A amended effective January 1, 2018 (44:4 Md. R. 256)