Md. Code Regs. 31.03.06.01-1

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.03.06.01-1 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Condominium" includes the common elements of a condominium.

(2) Home State.

(a) "Home State" means, except as provided in §B(2)(b) of this regulation, with respect to an insured:

(i) The state in which an insured maintains its principal place of business or, in the case of any individual, the individual's principal residence; or

(ii) If 100 percent of the insured risk is located out of the state referred to in §B(2)(a)(i) if this regulation, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.

(b) If more than 1 insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term "Home State" means the Home State, as determined pursuant to §B(2)(a) of this regulation, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.

(3) "Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements:

(a) The person is an employee of, or third-party consultant retained by, the commercial policyholder;

(b) The person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance; and

(c) The person meets at least one of the following criteria:

(i) The person has a bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Commissioner to demonstrate minimum competence in risk management and has 3 years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance;

(ii) The person has a bachelor's degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Commissioner to demonstrate minimum competence in risk management, and holds:

1. A designation as a Chartered Property and Casualty Underwriter (in this subparagraph referred to as "CPCU") issued by the American Institute for CPCU/Insurance Institute of America;

2. A designation as an Associate in Risk Management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;

3. A designation as a Certified Risk Manager (CRM) issued by the National Alliance for Insurance Education and Research;

4. A designation as a RIMS Fellow (RF) issued by the Global Risk Management Institute; or

5. Any other designation, certification, or license determined by the Commissioner to demonstrate minimum competency in risk management;

(iii) The person has at least 7 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance, and has any one of the designations specified in §B(3)(c)(ii)1-5 of this regulation;

(iv) The person has at least 10 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or

(v) The person has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Commissioner to demonstrate minimum competence in risk management.

(4) Residential Property.

(a) "Residential property" means a home, townhouse, or other habitable structure that is used principally as a residence.

(b) "Residential property" does not include:

(i) A vacant structure;

(ii) A structure with both commercial and residential use if more than 50 percent of the structure is devoted to commercial use;

(iii) An apartment building that contains more than four apartment units; or

(iv) A condominium.

Md. Code Regs. 31.03.06.01-1

Regulation .01-1 adopted effective January 7, 2002 (28:26 Md. R. 2275)
Regulation .01-1 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1938); amended permanently effective March 13, 2006 (33:5 Md. R. 523)
Regulation .01-1B amended effective February 20, 2012 (39:3 Md. R. 260)