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Ch. 285
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2005 LAWS OF MARYLAND
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Article - Insurance
19-406.
(a) [An] EXCEPT FOR A CANCELLATION FOR NONPAYMENT OF PREMIUM, AN
insurer may not cancel OR REFUSE TO RENEW a workers' compensation insurance
policy before its expiration unless, at least 30 days before the date of cancellation OR
NONRENEWAL, the insurer:
(1) serves on the employer, by personal service or certified mail
addressed to the last known address of the employer, a notice of intention to cancel OR
NONRENEW the policy; and
(2) files a copy of the notice with the State Workers' Compensation
Commission COMMISSION'S DESIGNEE.
(b) Notice under this section may be given:
(1) if the employer is a corporation, to an agent or officer of the
corporation on whom legal process may be served; and
(2) if the employer is a partnership, to a partner.
(c) Notice under this section shall state when the cancellation OR
NONRENEWAL takes effect.
(d) Whenever an employer receives a notice under this section, the employer
immediately shall secure coverage in accordance with § 9-402 of the Labor and
Employment Article that will be in effect when the cancellation takes effect.
(E) (1) THE NOTICE SHALL STATE THE INSURER'S ACTUAL REASON FOR
PROPOSING THE CANCELLATION OR NONRENEWAL OF THE POLICY.
(2) THE COMMISSIONER MAY NOT DISALLOW A PROPOSED ACTION OF
AN INSURER BECAUSE THE STATEMENT OF ACTUAL REASON CONTAINS:
(I) GRAMMATICAL, TYPOGRAPHICAL, OR OTHER ERRORS, IF THE
ERRORS ARE NOT MATERIAL TO THE PROPOSED ACTION AND ARE NOT MISLEADING;
(II) SURPLUS INFORMATION, IF THE SURPLUS INFORMATION IS
NOT MISLEADING; OR
(III) ERRONEOUS INFORMATION, IF IN THE ABSENCE OF THE
ERRONEOUS INFORMATION THERE IS A SUFFICIENT BASIS TO SUPPORT THE
PROPOSED ACTION.
(E) (F) (1) AT LEAST 10 DAYS BEFORE THE DATE OF CANCELLATION OF A
WORKERS' COMPENSATION INSURANCE POLICY FOR NONPAYMENT OF PREMIUM,
THE INSURER SHALL SEND TO THE EMPLOYER, BY CERTIFIED MAIL CERTIFICATE OF
MAILING MAIL, A WRITTEN NOTICE OF THE INTENTION TO CANCEL FOR
NONPAYMENT OF PREMIUM.
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- 1488 -
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