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ROBERT L. EHRLICH, JR., Governor
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Ch. 580
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(II) POLICIES ISSUED TO EXEMPT COMMERCIAL POLICYHOLDERS
UNDER § 11-206 OF THIS ARTICLE, IF THE POLICIES PROVIDE FOR WRITTEN NOTICE
OF NOT LESS THAN 30 DAYS OF THE INSURER'S INTENT TO CANCEL OR NONRENEW.
(B) (1) WHENEVER AN INSURER CANCELS OR REFUSES TO RENEW A POLICY
SUBJECT TO THIS SECTION FOR A REASON OTHER THAN NONPAYMENT OF PREMIUM,
THE INSURER MUST PROVIDE TO THE FIRST NAMED INSURED A WRITTEN
STATEMENT OF THE ACTUAL REASON FOR THE CANCELLATION OR REFUSAL TO
RENEW.
(2) THE REASON GIVEN IN THE STATEMENT OF ACTUAL REASON SHALL
BE CLEAR AND SPECIFIC.
(3) THE STATEMENT SHALL INCLUDE THE INSURER'S OFFER TO
PROVIDE ADDITIONAL INFORMATION IN SUPPORT OF THE PROPOSED ACTION UPON
THE WRITTEN REQUEST OF THE INSURED AND AN ADDRESS FOR THE INSURED TO
SUBMIT THE REQUEST.
(4) A WRITTEN REQUEST FOR INFORMATION UNDER THIS SUBSECTION
SHALL BE SENT NOT MORE THAN 30 DAYS FROM THE DATE OF THE NOTICE
CONTAINING THE ACTUAL REASON.
(5) ON RECEIVING A WRITTEN REQUEST FROM AN INSURED FOR
ADDITIONAL INFORMATION UNDER THIS SUBSECTION AND PRIOR TO THE
EFFECTIVE DATE OF THE PROPOSED ACTION, AN INSURER SHALL RESPOND IN
WRITING WITHIN 15 DAYS.
(6) EXCEPT AS PROVIDED IN § 27-501 OF THIS ARTICLE, A REQUEST FOR
ADDITIONAL INFORMATION UNDER THIS SECTION DOES NOT STAY THE PROPOSED
ACTION.
(C) THE COMMISSIONER MAY NOT DISALLOW A PROPOSED ACTION OF AN
INSURER BECAUSE THE STATEMENT OF ACTUAL REASON CONTAINS:
(1) GRAMMATICAL, TYPOGRAPHICAL, OR OTHER ERRORS, IF THE
ERRORS ARE NOT MATERIAL TO THE PROPOSED ACTION AND ARE NOT MISLEADING;
(2) SURPLUS INFORMATION, IF THE SURPLUS INFORMATION IS NOT
MISLEADING; OR
(3) ERRONEOUS INFORMATION, IF IN THE ABSENCE OF THE
ERRONEOUS INFORMATION THERE IS A SUFFICIENT BASIS TO SUPPORT THE
PROPOSED ACTION.
(D) INFORMATION CONCERNING THE ACTUAL REASON IS PRIVILEGED AND
DOES NOT CONSTITUTE GROUNDS FOR AN ACTION AGAINST THE INSURER, THE
INSURER'S REPRESENTATIVES, AN INSURANCE PRODUCER, OR ANY OTHER PERSON
THAT IN GOOD FAITH PROVIDES INFORMATION ON WHICH THE STATEMENT IS
BASED.
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- 2763 -
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