PARRIS N. GLENDENING, Governor                             Ch. 634

(2)     At the request of the Commissioner, each insurer shall file with the
Commissioner a copy of its underwriting standards, including any amendments or
supplements.

(3)     The Commissioner may review and examine the underwriting standards
to ensure compliance with this article.

(4) Each insurer may request a finding by the Commissioner that its
underwriting standards filed with the Commissioner be considered confidential
commercial information under § 10-617(d) of the State Government Article.

(5) The Commissioner shall adopt regulations to carry out this subsection.

(I) (1) THE PROVISIONS OF THIS SUBSECTION APPLY TO AUTOMOBILE
LIABILITY INSURANCE AND HOMEOWNERS INSURANCE.

(2) SUBJECT TO THE PROVISIONS OF PARAGRAPH (4) OF THIS
SUBSECTION, AN INSURER MAY CANCEL OR REFUSE TO RENEW UP TO 2% OF THE
TOTAL NUMBER OF POLICIES OF THE INSURER IN FORCE AT LAST YEAR END IN
EACH OF THE INSURER'S RATING TERRITORIES IN USE IN THE STATE, SUBJECT
ONLY TO THE PROHIBITIONS CONTAINED IN SUBSECTION (A) OF THIS SECTION
RELATING TO THE RACE, COLOR, CREED, SEX, OR BLINDNESS OF THE
POLICYHOLDER.

(3) SUBJECT TO THE PROVISIONS OF PARAGRAPHS (4) AND (5) OF THIS
SUBSECTION, AN INSURER MAY CANCEL OR REFUSE TO RENEW 2% OR MORE OF THE
TOTAL NUMBER OF POLICIES OF THE INSURER IN FORCE AT LAST YEAR END IN
EACH OF THE INSURER'S RATING TERRITORIES IN USE IN THE STATE, AT A RATE OF
CANCELING OR REFUSING TO RENEW ONE POLICY FOR ENTRY TWO NEW POLICIES
THE INSURER ISSUES IN THE SAME TERRITORY.

(4)     A CANCELLATION FOR NONPAYMENT OF PREMIUM OR EXPIRATION
OF A BINDER MAY NOT BE COUNTED FOR PURPOSES OF THE LIMITATIONS IN
PARAGRAPH (2) OR (3) OF THIS SUBSECTION.

(5)     THE COMMISSIONER SHALL BY REGULATION ESTABLISH A FAIR
AND NONDISCRIMINATORY FORMULA FOR COMPUTING THE NUMBER OF POLICIES
THAT MAY BE CANCELED OR NOT RENEWED UNDER PARAGRAPH (3) OF THIS
SUBSECTION THAT SHALL INCLUDE THE NUMBER OF POLICIES WRITTEN LESS
CANCELLATIONS INITIATED BY THE INSURER WITHIN THE FIRST 60 DAYS OF A
POLICY PERIOD.

27-605.

(b) (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.

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