Ch. 127 2004 LAWS OF MARYLAND
policy or binder of private passenger motor vehicle liability insurance liability
coverage for claims made by family members in a certain amount under certain
circumstances; requiring that the offer be made on a certain form; specifying the
contents of the form; prohibiting an insurer from refusing to underwrite a first
named insured because the first named insured requests or elects liability
coverage for claims of family members in a certain amount; establishing certain
penalties for violation of a certain provision of this Act; requiring the Insurance
Commissioner to make a certain study and provide a certain report by a certain
date; providing for the application of this Act; and generally relating to liability
coverage for claims of family members under private passenger motor vehicle
liability insurance.
BY adding to
Article - Insurance
Section 19-504.1
Annotated Code of Maryland
(2002 Replacement Volume and 2003 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
19-504.1.
(A) THIS SECTION APPLIES ONLY WHEN THE LIABILITY COVERAGE UNDER A
POLICY OR BINDER OF PRIVATE PASSENGER MOTOR VEHICLE LIABILITY INSURANCE
EXCEEDS THE AMOUNT REQUIRED UNDER § 17-103 OF THE TRANSPORTATION
ARTICLE.
(B) AN INSURER SHALL OFFER TO THE FIRST NAMED INSURED UNDER A
POLICY OR BINDER OF PRIVATE PASSENGER MOTOR VEHICLE LIABILITY INSURANCE
LIABILITY COVERAGE FOR CLAIMS MADE BY A FAMILY MEMBER IN THE SAME
AMOUNT AS THE LIABILITY COVERAGE FOR CLAIMS MADE BY A NONFAMILY
MEMBER UNDER THE POLICY OR BINDER
(C) (1) AN OFFER MADE UNDER THIS SECTION SHALL BE MADE ON THE
FORM THAT THE COMMISSIONER REQUIRES.
(2) THE FORM MAY BE PART OF THE INSURANCE APPLICATION, POLICY,
CONTRACT, OR BINDER
(3) THE FORM SHALL CLEARLY AND CONCISELY EXPLAIN IN 10 POINT
BOLDFACE TYPE:
(I) THE NATURE, EXTENT, BENEFIT, AND COST OF THE AMOUNT
OF LIABILITY COVERAGE FOR CLAIMS MADE BY FAMILY MEMBERS THAT IS
AVAILABLE TO THE FIRST NAMED INSURED; AND
(II) THAT AN INSURER MAY NOT REFUSE TO UNDERWRITE A FIRST
NAMED INSURED BECAUSE THE FIRST NAMED INSURED REQUESTS OR ELECTS THE
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