3706

LAWS OF MARYLAND

Ch. 685

INFORMATION TO CONTROL THE INCIDENCE OF ARSON FRAUD FROM
APPLICANTS FOR NEW POLICIES OF PROPERTY INSURANCE.

576.

(A) (1) "ANTIARSON APPLICATION" MEANS ANY APPLICATION
FOR PROPERTY INSURANCE COVERING THE PERIL OF FIRE THAT
INCLUDES CERTAIN QUESTIONS TO BE ANSWERED BY THE APPLICANT
IN ADDITION TO THE BASIC INFORMATION NORMALLY SUPPLIED TO AN
INSURER BY AN APPLICANT FOR THIS TYPE OF COVERAGE.

(2) "INSURANCE POLICY" AND "CONTRACT" DO NOT
MEAN AN EXISTING PROPERTY INSURANCE POLICY OR CONTRACT THAT
IS BEING RENEWED; HOWEVER THE ASSIGNMENT OF A POLICY OR
CONTRACT BECAUSE OF THE TRANSFER OF A MAJOR FINANCIAL
INTEREST IN THE INSURED REAL PROPERTY SHALL REQUIRE
COMPLETION OF AN ANTIARSON APPLICATION IF OTHERWISE REQUIRED
UNDER THIS SUBTITLE.

(B) THE USE OF THE ANTIARSON APPLICATION IS MANDATORY
(B) AN ANTIARSON APPLICATION MAY BE USED FOR COMMERCIAL
MONOLINE FIRE POLICIES, DESIGNATED OCCUPANCIES, AND
DESIGNATED AREAS OF THE STATE, BASED UPON A FINDING BY THE
INSURANCE COMMISSIONER, AFTER A PUBLIC HEARING, THAT THESE
COMMERCIAL MONOLINE FIRE POLICIES, DESIGNATED OCCUPANCIES,
AND AREAS OF THE STATE HAVE AN ABNORMALLY HIGH INCIDENCE OF
ARSON. HOWEVER, THE INSURANCE COMMISSIONER MAY EXTEND THE
APPLICATION OF THIS SUBTITLE TO OTHER THAN COMMERCIAL
MONOLINE FIRE POLICIES, IF HE FINDS, AFTER PUBLIC HEARING,
THAT THE PROPERTIES INSURED THROUGH THOSE OTHER TYPES OF
POLICIES ARE ESPECIALLY PRONE TO ARSON.

(C)  DESIGNATION OF ANY AREA OF THE STATE UNDER THIS
ACT SHALL NOT BE DEEMED A VALID REASON FOR REFUSAL TO WRITE,
TERMINATE, OR RENEW ANY POLICY OR CONTRACT OF INSURANCE.

(D)  THE INSURANCE COMMISSIONER, SHALL PROMULGATE THE
ANTIARSON APPLICATION FORM, AND SHALL CONSIDER GENERALLY
RECOGNIZED TWO-TIER APPLICATION FORMS. IF THE INITIAL
FIRST-TIER APPLICATION ELICITS CERTAIN PREDESIGNATED
ANSWERS, THEN THE APPLICANT SHALL BE REQUIRED TO COMPLETE A
SECOND-TIER SUPPLEMENTARY APPLICATION. THE TWO-TIERED
APPLICATION SHALL SECURE THE DISCLOSURE OF INFORMATION
INCLUDING, BUT NOT LIMITED TO:

(1)  THE NAME AND ADDRESS OF THE APPLICANT OF ANY
MORTGAGEES, AND OF ANY OTHER PARTIES WHO HAVE AN OWNERSHIP
INTEREST IN THE PROPERTY;

(2)  THE AMOUNT OF INSURANCE REQUESTED AND THE
METHOD OF VALUATION USED TO ESTABLISH THAT AMOUNT;

(3)  THE DATES AND SELLING PRICES OF THE PROPERTY
IN ALL REAL ESTATE TRANSACTIONS INVOLVING IT DURING THE LAST
3 YEARS;