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)