|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROBERT L. EHRLICH, JR, Governor
|
|
|
|
|
|
Ch. 541
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) solely to obtain a lower premium rate than would be accepted by
an authorized insurer;
(ii) solely to obtain more favorable terms of the insurance contract;
or
(iii) to replace coverage on residential property[, including coverage
for condominium associations,] which is insured by an authorized insurer and for
which a renewal offer has been made on substantially the same terms and conditions
as the current coverage; and
(6) there is compliance with other applicable provisions of this subtitle.
(b) This subtitle does not prohibit a lower premium rate or more favorable
terms in the insurance contract of an unauthorized insurer if:
(1) the risk is eligible as surplus lines under subsection (a)(2), (3), and (4)
of this section; or
(2) the applicant qualifies as a commercial insured who may waive, as
authorized by the Commissioner, the diligent search that is otherwise required under
this section.
(c) (1) This section does not prohibit a surplus lines broker from renewing a
risk with a surplus lines insurer if the risk was initially written on a surplus lines
basis when there were fewer than three authorized insurers actually writing on a
broad basis the particular kind and class of insurance to provide coverage against
liability of persons described in § 24-206(1) of this article in the State.
(2) However, even if on the date of renewal three or more authorized
insurers are writing on a broad basis the particular kind and class of insurance
required by the insured, a risk initially eligible for surplus lines insurance may be
renewed on a surplus lines basis if the [surplus lines insurer], LICENSED INSURANCE
PRODUCER, or SURPLUS LINES broker gives to the insured appropriate notice of the
POSSIBLE availability of comparable types of insurance being written by three or
more authorized insurers:
(i) each year; and
(ii) sufficiently in advance of the renewal date to allow the insured
to determine whether to renew the policy with the surplus lines insurer.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2005.
Approved May 26, 2005.
|
|
|
|
|
|
|
|
|
|
- 3139 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
