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PARRIS N. GLENDENING, Governor Ch. 634
within a certain number of days; providing an exception to the requirement that the
Insurance Commissioner hold a hearing under certain circumstances; and generally
relating to the notice to an insured and the determination of the Insurance
Commissioner regarding a premium increase in a policy of motor vehicle liability
insurance.
BY adding to
Article—Insurance
Section 19-112
Annotated Code of Maryland
(1996 Volume)
(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)
BY repealing and reenacting. with amendments,
Article - Insurance
Section 27-501 27-605(b) 27-605(b), (d). and (e)
Annotated Code of Maryland
(1995 Volume and 1996 Supplement)
(As enacted by Chapter ___ (H.B. 11) of the Acts of the General Assembly of 1997)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
19-112.
(A) SUBJECT TO THE PROVISIONS OF SUBSECTION (B) OF TIES SECTION, WITH
RESPECT TO A POLICY OF AUTOMOBILE LIABILITY INSURANCE OR HOMEOWNERS
INSURANCE, AN INSURER MAY RESCIND THE POLICY IF THE APPLICATION FOR THE
POLICY CONTAINS ANY MISREPRESENTATION, OMISSION, CONCEALMENT OF FACT,
OR INCORRECT STATEMENT THAT IS MATERIAL TO THE ACCEPTANCE OF THE RISK.
(B) A MISREPRESENTATION, OMISSION, CONCEALMENT OF FACT, OR
INCORRECT STATEMENT IS MATERIAL TO THE ACCEPTANCE OF THE RISK IF:
(1) THE MISREPRESENTATION, OMISSION, CONCEALMENT OF FACT, OR
INCORRECT STATEMENT IS FRAUDULENT;
(2) THE INSURER WOULD NOT HAVE ISSUED THE POLICY IF THE
APPLICATION HAD NOT CONTAINED THE MISREPRESENTATION, OMISSION,
CONCEALMENT OF FACT, OR INCORRECT STATEMENT; OR
(3) THE INSURER WOULD HAVE CHARGED A HIGHER PREMIUM IF THE
APPLICATION HAD NOT CONTAINED THE MISREPRESENTATION, OMISSION,
CONCEALMENT OF FACT, OR INCORRECT STATEMENT.
(C) RESCISSION OF A POLICY UNDER THE PROVISIONS OF THIS SECTION
RENDERS THE POLICY NULL AND VOID IN ITS INCEPTION AS TO ANY CLAIMS FOR
COURAGE ASSERTED UNDER THE POLICY.
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