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§ 12-301. Insurable interest in property required for property insurance

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 12. Policy Forms and Provisions
Subtitle 3. Property and Motor Vehicle Liability Insurance (Refs & Annos)
MD Code, Insurance, § 12-301
§ 12-301. Insurable interest in property required for property insurance
Currentness
Insurable interest defined
(a) In this section, “insurable interest” means an actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance against loss, destruction, or pecuniary damage or impairment to the property.
In general
(b) A contract of property insurance or a contract of insurance of an interest in or arising from property is enforceable only for the benefit of a person with an insurable interest in the property at the time of the loss.
Measurement of insurable interest
(c) An insurable interest in property is measured by the extent of possible harm to the insured from loss, injury, or impairment of the property.
Automobile insurance policies procured by independent insurance producers
(d)(1) This subsection applies only to an automobile insurance policy that is procured by an independent insurance producer.
(2) Upon renewal of an existing automobile insurance policy, if the insured or a person holding an insurable interest in the subject of the policy requests proof of insurance, an authorized insurer shall provide:
(i) a copy of the automobile insurance policy declarations; or
(ii) written proof of the automobile insurance that consists of:
1. the name and address of the insured and insurer;
2. a description of the vehicle, including the vehicle identification number, that is the subject of the insurance policy;
3. a description and the amount, if applicable, of the insurance coverage including applicable deductibles;
4. the inception and expiration dates of coverage;
5. the name and address of the person with an insurable interest; and
6. the premium for the applicable coverage.
Authorization from insured before providing proof of insurance
(e) An insurer may require written authorization from the insured before providing proof of insurance under this section to a person other than a financial institution.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2000, c. 460, § 1, eff. Oct. 1, 2000; Acts 2001, c. 731, § 9, eff. July 2, 2001; Acts 2002, c. 19, § 5, eff. April 9, 2002.
Formerly Art. 48A, § 367.
MD Code, Insurance, § 12-301, MD INSURANCE § 12-301
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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