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PARRIS N. GLENDENING, Governor Ch. 348
Commissioner shall order the specially reserved funds or any overcharge in the interim
rates to be distributed appropriately, except that refunds to policyholders that are
minimal may not be required.
374A.
(A) ALL STATEMENTS AND DESCRIPTIONS IN AN APPLICATION FOR A MOTOR
VEHICLE INSURANCE POLICY OR CONTRACT, OR FOR THE REINSTATEMENT OR
RENEWAL OF THE POLICY OR CONTRACT, BY OR ON BEHALF OF THE INSURED,
SHALL BE DEEMED TO BE REPRESENTATIONS AND NOT WARRANTIES.
(B) (1) AN INSURER MAY TAKE THE ACTION DESCRIBED IN PARAGRAPHS
(B)(2) AND (3) WITH RESPECT TO:
(I) AN INSURED WHO KNOWINGLY PROVIDES AN INCORRECT
ADDRESS FOR THE LOCATION AT WHICH AN INSURED VEHICLE IS PRINCIPALLY
GARAGED; AND
(II) A MISREPRESENTATION, OMISSION, CONCEALMENT OF FACT
OR INCORRECT STATEMENT IN AN APPLICATION.
(2) IF A FIRST PARTY CLAIM HAS NOT BEEN FILED PRIOR TO
DISCOVERY BY AN INSURER OF AN INCORRECT ADDRESS, OR A
MISREPRESENTATION, OMISSION, CONCEALMENT OF FACT, OR INCORRECT
STATEMENT, AN INSURER MAY RESCIND THE POLICY.
(3) IF A FIRST PARTY CLAIM HAS BEEN FILED PRIOR TO DISCOVERY OF
AN INCORRECT ADDRESS, OR A MISREPRESENTATION, OMISSION, CONCEALMENT
OF FACT, OR INCORRECT STATEMENT, AN INSURER MAY DENY FIRST PARTY
BENEFITS.
(4) AN INSURER MAY TAKE THE ACTIONS DESCRIBED IN PARAGRAPH
(2) OF THIS SECTION IF THE MISREPRESENTATION, OMISSION, CONCEALMENT OF
FACT, OR INCORRECT STATEMENT IN PARAGRAPH (B)(1)(II) IS EITHER:
(I) FRAUDULENT;
(II) MATERIAL EITHER TO THE ACCEPTANCE OF THE RISK, OR TO
THE HAZARD ASSUMED BY THE INSURER; OR
(III) THE INSURER IN GOOD FAITH WOULD NOT HAVE ISSUED,
REINSTATED, RENEWED THE POLICY OR CONTRACT, IF THE TRUE FACTS HAD BEEN
MADE KNOWN TO THE INSURER AS REQUIRED EITHER BY THE APPLICATION FOR
THE POLICY OR CONTRACT.
538.
As used in this subtitle:
(a) "Accident" means any occurrence involving a motor vehicle, other than an
occurrence caused intentionally by or at the direction of the insured, from which damage
to any property or injury to any person results.
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