Ch. 35

1997 LAWS OF MARYLAND

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

15-209. GRACE PERIOD.

(A) IN GENERAL.

(1) SUBJECT TO SUBSECTION (B) OF THIS SECTION, EACH POLICY OF
HEALTH INSURANCE SHALL CONTAIN THE FOLLOWING PROVISION:

"GRACE PERIOD: A GRACE PERIOD OF........(INSERT A NUMBER NOT LESS THAN

7' DAYS FOR WEEKLY PREMIUM POLICIES, '10' DAYS FOR MONTHLY PREMIUM
POLICIES AND '31' DAYS FOR ALL OTHER POLICIES) DAYS WILL BE GRANTED FOR
THE PAYMENT OF EACH PREMIUM FALLING DUE AFTER THE FIRST PREMIUM,
DURING WHICH GRACE PERIOD THIS POLICY SHALL CONTINUE IN FORCE."

(2) A POLICY SHALL PROVIDE A GRACE PERIOD OF 31 DAYS IF THE

POLICY:

(I) ALLOWS THE POLICYHOLDER TO CHOOSE ANY ONE OF TWO
OR MORE MODES OF PREMIUM PAYMENT BY REMITTING AN AMOUNT STATED IN
THE POLICY FOR THAT PARTICULAR MODE OF PAYMENT; AND

(II) DOES NOT REQUIRE A FORMAL REQUEST BY THE
POLICYHOLDER TO CHANGE THE MODE OF PREMIUM PAYMENT.

(B) EFFECT OF RIGHT TO REFUSE RENEWAL.

A POLICY IN WHICH THE INSURER RESERVES THE RIGHT TO REFUSE RENEWAL
SHALL STATE THE FOLLOWING PROVISION AT THE BEGINNING OF THE PROVISION
SET FORTH IN SUBSECTION (A)(1) OF THIS SECTION:

"UNLESS NOT LESS THAN THIRTY DAYS PRIOR TO THE PREMIUM DUE DATE
THE INSURER HAS DELIVERED TO THE INSURED OR HAS MAILED TO HIS LAST
ADDRESS AS SHOWN BY THE RECORDS OF THE INSURER WRITTEN NOTICE OF ITS
INTENTION NOT TO RENEW THIS POLICY BEYOND THE PERIOD FOR WHICH THE
PREMIUM HAS BEEN ACCEPTED."

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 442.

The quoted language of subsections (a)(1) and (b) of this section is the same
as the quoted language of former Art. 48A, § 442.

Defined terms: "Health insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101

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