Md. Code Regs. 31.08.03.09

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

Section 31.08.03.09 - Statement of Actual Reason

A. Applicability to Binders. This regulation applies to a binder only if the binder has been in effect for at least 45 days.

B. Contents of Statement. If an insurer cancels, refuses to renew, increases a premium for, or reduces coverage under a policy or binder of private passenger motor vehicle liability insurance, the statement of actual reason required by Insurance Article, §§ 27-613 or 27-614, Annotated Code of Maryland, shall include at a minimum:

(1) If the action of the insurer is due wholly or partly to an accident:

(a) The name of the driver;

(b) The date of the accident; and

(c) If fault is a material factor for the insurer's action, a statement that the driver was at fault.

(2) If the action of the insurer is due wholly or partly to a violation of Maryland vehicle law or the vehicle laws of another state:

(a) The name of the driver;

(b) The date of the violation; and

(c) A description of the violation.

(3) If the action of the insurer is due wholly or partly to the claims history of an insured:

(a) The date that the claim that is the basis of the insurer's action occurred; and

(b) A description of each claim, such as:

(i) "Theft of vehicle on [date]";

(ii) "Vandalism of vehicle on [date]"; or

(iii) "Towing claim on [date]"; or

(4) If the action of the insurer is due wholly or partly to a reason other than those described in §B(1)-(3) of this regulation or to a violation of the terms and conditions of the policy or the underwriting standards of the insurer, a description of the action of the insured that is the basis of the insurer's action, such as:

(a) "Insured loans the insured vehicle to an excluded driver"; or

(b) "Insured loans the insured vehicle to a non-listed driver".

C. In addition to the information required by §B of this regulation, with respect to a cancellation or nonrenewal, the statement of actual reason required by Insurance Article, § 27-613, Annotated Code of Maryland, shall include a statement that the action by the insured that is the basis of the cancellation or nonrenewal violates the insurer's rating criteria or underwriting standards.

Md. Code Regs. 31.08.03.09

Regulation .09B amended effective March 14, 2005 (32:5 Md. R. 582)