Ch. 35

1997 LAWS OF MARYLAND

A PARTY TO A HEARING OR PROCEEDING UNDER THIS SUBTITLE MAY APPEAL
FROM THE HEARING, PROCEEDING, OR A DECISION OF THE COMMISSIONER IN
ACCORDANCE WITH § 2-215 OF THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 234C and 234AA(e)(2).

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101

SUBTITLE 6. CANCELLATIONS, NONRENEWALS, PREMIUM INCREASES, AND
REDUCTIONS IN COVERAGE.

27-601. CANCELLATION OR NONRENEWAL OF POLICIES — REQUIRED NOTICES.

(A) SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO POLICIES OF:

(1) LIFE INSURANCE;

(2) HEALTH INSURANCE;

(3) MOTOR VEHICLE LIABILITY INSURANCE ISSUED TO A RESIDENT OF
A HOUSEHOLD IN THE STATE AS SET FORTH IN § 27-605 OF THIS SUBTITLE; OR

(4) SURETY INSURANCE.

(B) NOTICE OF POSSIBLE RIGHT TO REPLACE INSURANCE.

(1) WHENEVER AN INSURER, AS REQUIRED BY SUBSECTION (C) OF THIS
SECTION, GIVES NOTICE OF ITS INTENTION TO CANCEL OR NOT TO RENEW A POLICY
SUBJECT TO THIS SECTION ISSUED IN THE STATE OR BEFORE AN INSURER CANCELS
A POLICY SUBJECT TO THIS SECTION ISSUED IN THE STATE FOR A REASON OTHER
THAN NONPAYMENT OF PREMIUM, THE INSURER SHALL NOTIFY THE INSURED OF
THE POSSIBLE RIGHT OF THE INSURED TO REPLACE THE INSURANCE UNDER THE
MARYLAND PROPERTY INSURANCE AVAILABILITY ACT OR THROUGH ANOTHER
PLAN FOR WHICH THE INSURED MAY BE ELIGIBLE.

(2) THE NOTICE REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION

MUST:

(I) BE IN WRITING;

(II) CONTAIN THE CURRENT ADDRESS AND TELEPHONE NUMBER
OF THE OFFICES OF THE APPROPRIATE PLAN; AND

(III) BE SENT TO THE INSURED IN THE SAME MANNER AND AT THE
SAME TIME AS THE FIRST WRITTEN NOTICE OF CANCELLATION OR OF INTENTION
NOT TO RENEW GIVEN OR REQUIRED BY LAW, REGULATION, OR CONTRACT.

(C) NOTICE OF INTENTION TO CANCEL OR NOT TO RENEW.

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