Chapter 16. Notice of Amount of Renewal and Expiring Policy Premiums
Regulation .01 Purpose.LinkCopy Citation
The purpose of this chapter is to ensure that an insurer properly notifies the named insured and insurance producer of the amount of a policy’s renewal and expiring premiums in accordance with Insurance Article, §27-607, Annotated Code of Maryland.
Regulation .02 Applicability.LinkCopy Citation
This chapter applies to all policies of personal insurance and insurance issued under the Maryland Property Insurance Availability Act or any similar act instituted to ensure the availability of property insurance.
Regulation .03 Definitions.LinkCopy Citation
A.
In this chapter the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Expiring premium” means:
(a)
The dollar amount of the premium charged at the beginning of the expiring policy term; and
(b)
If different, the dollar amount of the premium:
(i)
Charged at the time the insurer issues the notice required by Regulation .04 of this chapter; and
(ii)
Stated on an annualized basis.
(2)
“Insurer” means an authorized property or casualty insurer that issues or delivers a policy of personal insurance in the State or a policy issued under the Maryland Property Insurance Availability Act or any similar act instituted to ensure the availability of property insurance.
(3)
“Maryland Property Insurance Availability Act” means insurance described in Insurance Article, Title 25, Subtitle 4, Annotated Code of Maryland.
(4)
“Personal insurance” means a policy of property insurance or casualty insurance as defined by Insurance Article, §27-601(c), Annotated Code of Maryland.
(5)
“Renewal premium” means the dollar amount of the premium to be charged for the next policy term.
Regulation .04 Procedures and Requirements.LinkCopy Citation
A.
At least 45 days prior to the renewal date of a policy subject to this chapter, an insurer shall send written notice to the named insured and the insurance producer of the policy.
B.
The notice required under §A of this regulation:
(1)
Shall be clear and specific;
(2)
Shall state the dollar amount or amounts of the policy’s expiring premium;
(3)
Shall state the dollar amount of the policy’s renewal premium;
(4)
Shall be sent either by first class mail or delivered by electronic means pursuant to the requirements of Insurance Article, §27-601.2, Annotated Code of Maryland; and
(5)
May be sent together with the renewal policy and may be included on the declarations page of the renewal policy.
Regulation .05 Penalties.LinkCopy Citation
Penalties for violations of these regulations shall be assessed in accordance with Insurance Article, §§4-113 and 27-612, Annotated Code of Maryland.
Chapter annotations
Authority: Insurance Article, §§2-109, 4-113, 27-607, and 27-612, Annotated Code of Maryland
History: Effective date: January 1, 2015 (41:21 Md. R. 1261)