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S.B. 807 VETOES
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Article - Insurance
27-501.
(a) (3) AN INSURER MAY NOT CANCEL A PARTICULAR INSURANCE RISK OR
CLASS OF RISK IF THE PROVISIONS OF THE POLICY REQUIRE A ONE TIME DEPOSIT
FOR A STATED AMOUNT OF COVERAGE UNLESS;
(I) THE CANCELLATION IS IN ACCORDANCE WITH THE
PROVISIONS OF THIS SUBTITLE; AND
(II) THE CANCELLATION TAKES EFFECT ON THE ANNIVERSARY
DATE OF THE INCEPTION OF THE POLICY
(d) (1) With respect to automobile liability insurance, an insurer may not:
(i) cancel, refuse to renew, or otherwise terminate coverage for an
automobile insurance risk because of a claim, traffic violation, or traffic accident that
occurred more than 3 years before the effective date of the policy or renewal; or
(ii) refuse to underwrite an automobile insurance risk because of a
claim, traffic violation, or traffic accident that occurred more than 3 years before the
date of application.
(2) With respect to homeowner's insurance, an insurer may not:
(i) cancel, refuse to renew, or otherwise terminate coverage for a
homeowner's insurance risk because of a claim that occurred more than 3 years before
the effective date of the policy or renewal; or
(ii) refuse to underwrite a homeowner's insurance risk because of a
claim that occurred more than 3 years before the date of application.
(3) AN INSURER MAY CANCEL A POLICY OF HOMEOWNER'S INSURANCE
UNDER WHICH A ONE-TIME GUARANTEED FULLY REFUNDABLE DEPOSIT IS
REQUIRED FOR A STATED AMOUNT OF COVERAGE, IF THE CANCELLATION:
(I) TAKES EFFECT ON THE ANNIVERSARY DATE OF THE
INCEPTION OF THE POLICY;
(II) IS NOT BASED ON A CLAIM THAT OCCURRED MORE THAN 3
YEARS BEFORE THE ANNIVERSARY DATE OF THE POLICY ON WHICH THE PROPOSED
CANCELLATION WOULD TAKE EFFECT; AND
(III) IS OTHERWISE IN ACCORDANCE WITH THIS SUBTITLE.
[(3)](4) [Paragraphs (1) and (2) of this subsection do] THIS
SUBSECTION DOES not apply to a claim involving conviction of the insured or
applicant for fraud or arson.
(d) (2) (I) IN THIS PARAGRAPH, "PERPETUAL POLICY" MEANS A POLICY
THAT:
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