WILLIAM DONALD SCHAEFER, Governor Ch. 602

Section 241A

Annotated Code of Maryland
(1986 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

240A.

(a)  Whenever an insurer gives notice of its intention to
cancel or not to renew a policy of insurance other than life,
health, motor vehicle liability insurance issued to any resident
of a household in Maryland as set forth in § 240AA, or surety
insurance as defined in § 69 of this article issued in this State
as hereinafter required in subsection (c) hereof, or before it
cancels any such policy of insurance for a reason other than for
nonpayment of premium, the insurer shall notify the insured of
his possible right to replace such insurance through the Maryland
property insurance availability plan, or any other plan, if there
be such, and he may be eligible therefor.

(b)  The notice shall contain the current address and
telephone number of the offices of such plan. It shall be sent to
the insured in the same manner and at the same time as the first
written notice of cancellation or of intention not to renew given
or required by law, regulation or contract.

(c)  The insurer shall see that written notice of intention
to cancel for a reason other than nonpayment of premium or notice
of intention not to renew a policy issued in this State is sent
to the insured not less than [45] 68 days prior to the date
of the proposed cancellation or expiration of the policy, as the
case may be. Notice given the insured by an insurance broker or
agent on behalf of the insurer shall be deemed to have been given
by the insurer for the purposes of this subsection; provided,
however, that no such notices shall be required where the agent
or broker has replaced the insurance.

(D) (1) WHENEVER AN INSURER INTENDS TO INCREASE A PREMIUM
FOR A PARTICULAR POLICY WRITTEN IN THIS STATE BY 20 PERCENT OR
MORE, THE INSURER SHALL NOTIFY THE INSURED AND AGENT OF THE
INCREASE.

(2) (I) THE NOTICE SHALL BE SENT TO THE INSURED AND
AGENT NOT LESS THAN 60 45 DAYS PRIOR TO THE EFFECTIVE DATE OF THE
PROPOSED INCREASE IN PREMIUM.

(II) THE NOTICE SHALL BE SENT BY CERTIFICATE OF
MAILING FIRST CLASS MAIL.

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