Ch. 35

1997 LAWS OF MARYLAND

(II) HEALTH INSURANCE;

(III) MOTOR VEHICLE LIABILITY INSURANCE; OR

(IV) SURETY INSURANCE.

(C) REQUIRED.

(1) WHENEVER AN INSURER CANCELS OR REFUSES TO RENEW A
POLICY SUBJECT TO THIS SECTION, THE INSURER MUST PROVIDE TO THE
APPLICANT A STATEMENT OF THE ACTUAL REASON FOR THE CANCELLATION OR
REFUSAL TO RENEW, OR NOTICE THAT THE ACTUAL REASON WILL BE PROVIDED ON
REQUEST, IF:

(I) THE AUTHORIZED PREMIUM HAS BEEN TENDERED OR PAID;

AND

(II) A WRITTEN REQUEST FOR THE ACTUAL REASON HAS BEEN
MADE WITHIN 30 DAYS AFTER RECEIPT OF THE STATEMENT OF INTENTION TO
CANCEL OR NOT RENEW, WHETHER OR NOT THE APPLICANT SUBSEQUENTLY IS
ACCEPTED UNDER A PLAN DESCRIBED IN SUBSECTION (B)(1) OF THIS SECTION.

(2) PARAGRAPH (1) OF THIS SUBSECTION APPLIES TO THE
CANCELLATION OF OR REFUSAL TO RENEW A BINDER THAT HAS BEEN IN EFFECT
FOR AT LEAST 15 DAYS OR AN ACTUAL POLICY THAT HAS BEEN ISSUED.

(D) PRIVILEGED.

A STATEMENT OF ACTUAL REASON OR STATEMENT REFUSING AN
APPLICATION IS PRIVILEGED AND DOES NOT CONSTITUTE GROUNDS FOR AN
ACTION AGAINST THE INSURER, ITS REPRESENTATIVES, OR ANOTHER PERSON THAT
IN GOOD FAITH PROVIDES TO THE INSURER INFORMATION ON WHICH THE
STATEMENT IS BASED.

(E) COPY TO COMMISSIONER.

A COPY OF THE STATEMENT OF ACTUAL REASON OR STATEMENT REFUSING
AN APPLICATION MUST BE PROVIDED TO THE COMMISSIONER.

(F) TIME OF STATEMENT.

IF REQUESTED, THE STATEMENT OF ACTUAL REASON OR STATEMENT
REFUSING AN APPLICATION MUST BE MADE BY THE INSURER OR ITS QUALIFIED
AGENT WITHIN 10 DAYS AFTER RECEIPT OF THE REQUEST BY THE INSURER.

(G) STATEMENT NOT REQUESTED.

IF NOT REQUESTED, THE STATEMENT OF ACTUAL REASON OR STATEMENT
REFUSING AN APPLICATION MUST CONTAIN NOTICE TO THE APPLICANT THAT:

(1) THE APPLICANT MAY REQUEST THE ACTUAL REASON FOR THE
REFUSAL TO ISSUE, CANCELLATION, OR REFUSAL TO RENEW IF THE APPLICANT
MAKES THE REQUEST WITHIN 30 DAYS AFTER RECEIPT OF THE STATEMENT OF
REFUSAL TO ISSUE OR INTENTION TO CANCEL OR NOT RENEW; AND

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