Ch. 35

1997 LAWS OF MARYLAND

Defined terms: "Insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101

27-607. NOTICE OF RENEWAL PREMIUM DUE.

(A) IN GENERAL.

(1) UNLESS AN INSURER HAS PROVIDED NOTICE OF ITS INTENTION NOT
TO RENEW A POLICY IN COMPLIANCE WITH § 27-601, § 27-603, OR § 27-605 OF THIS
SUBTITLE, THE INSURER MUST PROVIDE EACH POLICYHOLDER WITH NOTICE OF
RENEWAL PREMIUM DUE AT LEAST 17 DAYS BEFORE THE DUE DATE.

(2) A QUALIFIED AGENT OR QUALIFIED BROKER MAY PROVIDE NOTICE
UNDER PARAGRAPH (1) OF THIS SUBSECTION ON BEHALF OF THE INSURER.

(3) THE DUTY TO PROVIDE NOTICE UNDER PARAGRAPH (1) OF THIS
SUBSECTION IS DEEMED DISCHARGED IF:

(I) THE INSURER SHOWS THAT ITS ESTABLISHED PROCEDURES
WOULD HAVE RESULTED IN PLACING THE NOTICE OF RENEWAL PREMIUM DUE IN
THE UNITED STATES MAIL; AND

(II) THERE IS NO SHOWING THAT IN FACT THE NOTICE WAS NOT
PLACED IN THE MAIL.

(B) EFFECT OF FAILURE TO PROVIDE NOTICE.

IF AN INSURER FAILS TO PROVIDE NOTICE OF RENEWAL PREMIUM DUE
UNDER SUBSECTION (A) OF THIS SECTION, AND SUBSEQUENTLY THE
POLICYHOLDER FAILS TO MAKE TIMELY PAYMENT OF THE RENEWAL PREMIUM,
THE INSURER MUST:

(1) PROVIDE COVERAGE FOR EACH CLAIM THAT:

(I) WOULD HAVE BEEN COVERED UNDER THE POLICY; AND

(II) ARISES WITHIN 45 DAYS AFTER THE DATE THE INSURED
DISCOVERS OR SHOULD HAVE DISCOVERED THAT THE POLICY WAS NOT RENEWED;
AND

(2) RENEW THE POLICY ON TENDER OF PAYMENT WITHIN 30 DAYS
AFTER THE POLICYHOLDER DISCOVERS OR SHOULD HAVE DISCOVERED THAT THE
POLICY WAS NOT RENEWED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 240B(a) through (c).

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

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