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§ 27-609. Exclusion of named drivers

West's Annotated Code of MarylandInsuranceEffective: October 1, 2020

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 27. Unfair Trade Practices and Other Prohibited Practices (Refs & Annos)
Subtitle 6. Cancellations, Nonrenewals, Premium Increases, and Reductions in Coverage (Refs & Annos)
Effective: October 1, 2020
MD Code, Insurance, § 27-609
§ 27-609. Exclusion of named drivers
Currentness
Application of section
(a) This section does not apply to a premium increase for a driver or vehicle due to a program that measures the operation of an insured vehicle during the current policy period.
Continuation or renewal of insurance but excluding coverage when motor vehicle is operated by excluded individuals
(b)(1)(i) This paragraph applies to a private passenger motor vehicle liability insurance policy issued in the State under which more than one individual is insured.
(ii) If an insurer is authorized under this article to cancel, nonrenew, or increase the premiums on a policy of private passenger motor vehicle liability insurance subject to this paragraph because of the claim experience or driving record of one or more but less than all of the individuals insured under the policy, the insurer, instead of cancellation, nonrenewal, or premium increase, shall offer to continue or renew the insurance, but to exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the cancellation, nonrenewal, or premium increase.
(2)(i) This paragraph applies to a motor vehicle liability insurance policy issued in the State, other than a policy subject to paragraph (1) of this subsection, under which more than one individual is insured.
(ii) If an insurer is authorized under this article to cancel, nonrenew, or increase the premiums on a policy of motor vehicle liability insurance subject to this paragraph because of the claim experience or driving record of one or more but less than all of the individuals insured under the policy, the insurer, instead of cancellation, nonrenewal, or premium increase, may offer to continue or renew the insurance, but to exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the cancellation, nonrenewal, or premium increase.
Insurers able to legally refuse to issue policy to excluded individual
(c) If an insurer legally could refuse to issue a policy of motor vehicle liability insurance under which more than one individual is insured because of the claim experience or driving record of one or more but less than all of the individuals applying to be insured under the policy, the insurer may issue the policy but exclude all coverage when a motor vehicle is operated by the specifically named excluded individual or individuals whose claim experience or driving record could have justified the refusal to issue.
Policies excluding coverage when named excluded driver is operating motor vehicle
(d) A policy described in subsection (b) or (c) of this section may be endorsed to exclude specifically all coverage for any of the following when the named excluded driver is operating a motor vehicle covered under the policy whether or not that operation or use was with the express or implied permission of an individual insured under the policy:
(1) the excluded operator or user;
(2) the motor vehicle owner;
(3) family members residing in the household of the excluded operator or user or motor vehicle owner; and
(4) any other person, except for the coverage required by §§ 19-505 and 19-509 of this article if that coverage is not available under another motor vehicle policy.
Premiums not reflective of claim experience or driving record of excluded drivers
(e) The premiums charged on a policy that excludes a named driver or drivers under this section may not reflect the claim experience or driving record of the excluded named driver or drivers.

Credits

Added as Insurance § 27-606 by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997. Amended by Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 2000, c. 61, § 1, eff. April 25, 2000. Renumbered as Insurance § 27-609 by Acts 2006, c. 580, § 2, eff. Jan. 1, 2007. Amended by Acts 2007, c. 88, § 1, eff. Oct. 1, 2007; Acts 2018, c. 192, § 1, eff. Oct. 1, 2018; Acts 2020, c. 144, § 1, eff. Oct. 1, 2020; Acts 2020, c. 145, § 1, eff. Oct. 1, 2020.
Formerly Art. 48A, § 240C-1.
MD Code, Insurance, § 27-609, MD INSURANCE § 27-609
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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