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§ 3-306.1. Diligent search requirements

West's Annotated Code of MarylandInsuranceEffective: July 1, 2011

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 3. Kinds of Insurers
Subtitle 3. Surplus Lines Insurance (Refs & Annos)
Effective: July 1, 2011
MD Code, Insurance, § 3-306.1
§ 3-306.1. Diligent search requirements
Currentness
Completion of diligent search
(a)(1) A diligent search required by § 3-306 of this subtitle shall be deemed completed if:
(i) the insured or the surplus lines broker or insurance producer obtains declinations of a risk from three authorized insurers that are writing the particular kind and class of insurance in this State; and
(ii) the declinations are included in the affidavit required under § 3-307 of this subtitle.
(2) In addition to the requirement of paragraph (1)(i) of this subsection, an insurance producer shall obtain a declination from each insurer for which the insurance producer has been appointed that the insurance producer knows, or should know, is actually writing on a broad basis the particular kind and class of insurance sought.
Eligible surplus line coverage exempt from diligent search requirement
(b) A diligent search may not be required:
(1) for any coverage on a list of eligible surplus lines coverages compiled by the Commissioner; or
(2) if the diligent search is waived by an exempt commercial purchaser in accordance with the Act.
Renewal of personal lines insurance policy
(c) Notwithstanding the renewal provisions of § 3-306(c) of this subtitle, a diligent search shall be required for each renewal of a personal lines insurance policy written through a surplus lines insurer.
Surplus lines broker exempt from diligent search requirement
(d) Notwithstanding subsection (b)(2) of this section, a surplus lines broker is not required to perform a diligent search to determine whether the full amount or type of insurance can be obtained from admitted insurers when the surplus lines broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser if:
(1) the surplus lines broker has disclosed to the exempt commercial purchaser that the insurance may or may not be available from admitted insurers that may be subject to greater protection and regulatory oversight; and
(2) the exempt commercial purchaser subsequently has requested the surplus lines broker in writing to procure nonadmitted insurance from or place the nonadmitted insurance with a nonadmitted insurer.

Credits

Added by Acts 1998, c. 751, § 1, eff. Oct. 1, 1998. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2011, c. 520, § 1, eff. July 1, 2011; Acts 2011, c. 521, § 1, eff. July 1, 2011.
MD Code, Insurance, § 3-306.1, MD INSURANCE § 3-306.1
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.
End of Document