§ 27-613. Notice of cancellation, nonrenewal, or reduction of coverage; private passenger motor...
West's Annotated Code of MarylandInsuranceEffective: October 1, 2021
Effective: October 1, 2021
MD Code, Insurance, § 27-613
§ 27-613. Notice of cancellation, nonrenewal, or reduction of coverage; private passenger motor vehicle insurance
(a)(1) This section applies only to private passenger motor vehicle liability insurance.
(b)(1) In accordance with this section, with respect to a policy of private passenger motor vehicle liability insurance or a binder of private passenger motor vehicle liability insurance, if the binder has been in effect for at least 45 days, issued in the State to any resident of the household of the named insured, an insurer may:
2. provides that each insured affected by the plan of withdrawal shall be sent by a first-class mail tracking method at least 45 days before the nonrenewal of the policy a written notice that states the date that the policy will be nonrenewed and that the nonrenewal is the result of the withdrawal of the insurer from the market.
(c)(1) At least 45 days before the proposed effective date of the action, an insurer that intends to take an action subject to this section shall send written notice of its proposed action to the insured at the last known address of the insured:
1. the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with § 27-501 of this title, the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage; and
2. if the action of the insurer is due wholly or partly to a violation of the Maryland Vehicle Law1 or the vehicle laws of another state or territory of the United States:
(d) At least 10 days before the date an insurer proposes to cancel a policy for nonpayment of premium, the insurer shall send to the insured, by a first-class mail tracking method, a written notice of intention to cancel for nonpayment of premium.
(e) A statement of actual reason contained in the notice given under subsection (c) of this section is privileged and does not constitute grounds for an action against the insurer, its representatives, or another person that in good faith provides to the insurer information on which the statement is based.
(f)(1) This subsection does not apply to an action of an insurer taken under subsection (d) of this section.
(g)(1) Based on the information contained in the notice, the Commissioner shall:
(6) At the hearing the insurer has the burden of proving its proposed action to be in accordance with the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, as applicable, and not in violation of § 27-501 of this title and, in doing so, may rely only on the reasons set forth in its notice to the insured.
(h)(1) The Commissioner shall issue an order within 30 days after the conclusion of the hearing.
(2) If the Commissioner finds the proposed action of the insurer to be in accordance with the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, as applicable, and not in violation of § 27-501 of this title, the Commissioner shall:
(3) If the Commissioner finds that the actual reason for the proposed action is not stated in the notice or the proposed action is not in accordance with § 27-501 of this title, the insurer's filed rating plan, its underwriting standards, or the lawful terms and conditions of the policy related to a cancellation, nonrenewal, or reduction in coverage, the Commissioner shall:
(i) The Commissioner may delegate the powers and duties of the Commissioner under this section to one or more employees or hearing examiners.
Credits
Added as Insurance § 27-605 by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997. Amended by Acts 1997, c. 634, § 1, eff. Oct. 1, 1997; Acts 2000, c. 124, § 1, eff. Oct. 1, 2000; Acts 2002, c. 553, § 2, eff. Oct. 1, 2002; Acts 2003, c. 21, § 1, eff. April 8, 2003; Acts 2005, c. 117, § 1, eff. Oct. 1, 2005; Acts 2006, c. 44, § 5, eff. April 8, 2006; Acts 2006, c. 350, § 1, eff. Jan. 1, 2007. Renumbered as Insurance § 27-613 by Acts 2006, c. 580, § 1, eff. Jan. 1, 2007; Acts 2009, c. 60, § 5, eff. April 14, 2009; Acts 2009, c. 379, § 1, eff. Oct. 1, 2009. Amended by Acts 2012, c. 66, § 1, eff. April 10, 2012; Acts 2014, c. 364, § 1, eff. Oct. 1, 2014; Acts 2017, c. 39, § 1, eff. Oct. 1, 2017; Acts 2020, c. 523, § 1, eff. Oct. 1, 2020; Acts 2021, c. 103, § 1, eff. Oct. 1, 2021.
Formerly Art. 48A, § 240AA.
Footnotes
Transportation, § 11-101 et seq.
MD Code, Insurance, § 27-613, MD INSURANCE § 27-613
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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