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2005 LAWS OF MARYLAND
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Ch. 424
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BY adding to
Article - Insurance
Section 27-501(o)
Annotated Code of Maryland
(2002 Replacement Volume and 2004 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
27-501.
(a) (1) An insurer or insurance producer may not cancel or refuse to
underwrite or renew a particular insurance risk or class of risk for a reason based
wholly or partly on race, color, creed, sex, or blindness of an applicant or policyholder
or for any arbitrary, capricious, or unfairly discriminatory reason.
(2) (i) This paragraph does not apply to a medical professional liability
insurer or insurance producer that issues or delivers a policy in the State to a health
care provider who has been licensed for more than 3 years by the appropriate State
licensing board for the health care provider.
(ii) Except as provided in this section, an insurer or insurance
producer may not cancel or refuse to underwrite or renew a particular insurance risk
or class of risk except by the application of standards that are reasonably related to
the insurer's economic and business purposes.
(j) (1) In the case of homeowner's insurance, standards reasonably related to
an insurer's economic and business purpose under subsection (a)(2) of this section,
include, but are not limited to, the following and do not require statistical validation:
(i) a material misrepresentation in connection with the application,
policy, or presentation of a claim;
(ii) nonpayment of premium;
(iii) a change in the physical condition or contents of the premises or
dwelling which results in an increase in a hazard insured against and which, if
present and known to the insurer prior to the issuance of the policy, the insurer would
not have issued the policy;
(iv) conviction:
1. within the preceding 5-year period, of arson; or
2. within the preceding 3-year period, of a crime which
directly increases the hazard insured against;
(v) subject to subsection (i) of this section, the claims history of the
insured where the insured makes more than three claims in the preceding 3-year
period;
- 1964 -
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