Ch. 35

1997 LAWS OF MARYLAND

45 DAYS, ISSUED IN THE STATE TO ANY RESIDENT OF THE HOUSEHOLD OF THE
NAMED INSURED, AN INSURER OTHER THAN THE MARYLAND AUTOMOBILE
INSURANCE FUND MAY NOT:

(I) CANCEL OR FAIL TO RENEW THE POLICY OR BINDER FOR A
REASON OTHER THAN NONPAYMENT OF PREMIUM;

(II) INCREASE A PREMIUM FOR ANY COVERAGE ON THE POLICY;

OR

(III) REDUCE COVERAGE UNDER THE POLICY.

(2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBSECTION, THE
REQUIREMENTS OF THIS SECTION DO NOT APPLY IF:

(I) THE PREMIUM INCREASE DESCRIBED IN PARAGRAPH (1)(II) OF
THIS SUBSECTION IS PART OF A GENERAL INCREASE IN PREMIUMS APPROVED BY
THE COMMISSIONER AND DOES NOT RESULT FROM A RECLASSIFICATION OF THE
INSURED;

(II) THE REDUCTION IN COVERAGE DESCRIBED IN PARAGRAPH
(1)(III) OF THIS SUBSECTION IS PART OF A GENERAL REDUCTION IN COVERAGE
APPROVED BY THE COMMISSIONER OR SATISFIES THE REQUIREMENTS OF TITLE 19,
SUBTITLE 5 OF THIS ARTICLE; OR

(III) THE FAILURE TO RENEW THE POLICY TAKES PLACE UNDER A
PLAN OF WITHDRAWAL THAT:

1. IS APPROVED BY THE COMMISSIONER UNDER § 27-603 OF

THIS SUBTITLE; AND

2. PROVIDES THAT EACH INSURED AFFECTED BY THE PLAN
OF WITHDRAWAL SHALL BE SENT BY CERTIFICATE OF MAILING AT LEAST 45 DAYS
BEFORE THE NONRENEWAL OF THE POLICY A WRITTEN NOTICE THAT STATES THE
DATE THAT THE POLICY WILL BE NON RENEWED AND THAT THE NONRENEWAL IS
THE RESULT OF THE WITHDRAWAL OF THE INSURER FROM THE MARKET

(B) SAME — NOTICE OF PROPOSED ACTION.

(1) AT LEAST 45 DAYS BEFORE THE PROPOSED EFFECTIVE DATE OF THE
ACTION, AN INSURER THAT INTENDS TO TAKE AN ACTION SUBJECT TO THIS
SECTION MUST SEND WRITTEN NOTICE OF ITS PROPOSED ACTION TO THE INSURED
AT THE LAST KNOWN ADDRESS OF THE INSURED:

(I) FOR NOTICE OF CANCELLATION OR NONRENEWAL, BY
CERTIFIED MAIL; AND

(II) FOR ALL OTHER NOTICES OF ACTIONS SUBJECT TO THIS
SECTION, BY CERTIFICATE OF MAILING.

(2) THE NOTICE MUST BE IN TRIPLICATE AND ON A FORM APPROVED
BY THE COMMISSIONER.

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