Md. Code Regs. 31.08.08.06

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

Section 31.08.08.06 - Cancellation, Nonrenewal, or Reimposition of an Exclusion

A. An insurer may cancel or not renew lead hazard coverage or reimpose an exclusion only if the:

(1) Insured fails to:

(a) Pay the applicable premium,

(b) Provide reasonable access to the affected property for purposes of inspection for the presence or condition of lead by the insurer or the insurer's designee,

(c) Comply with the terms or conditions of the policy, or

(d) Perform lead hazard reduction treatments as set forth in Environment Article, § 6-815(a), Annotated Code of Maryland; or

(2) Affected property fails to comply or maintain compliance with the risk reduction standards under Environment Article, § 6-815(a)(2), Annotated Code of Maryland.

B. An insurer may cancel or not renew lead hazard coverage or reimpose an exclusion under §A(1)(d) or (2) of this regulation only if the insurer provides the insured with:

(1) Written notice that the insurer intends to cancel or not renew lead hazard coverage or intends to reimpose the exclusion; and

(2) An opportunity to correct the violation within 30 days after the mailing of the notice by the insurer.

C. In addition to any other contractual requirement, the insured shall provide the insurer with a certification under Environment Article, § 6-815(c) or 6-816, Annotated Code of Maryland, that the violation has been corrected and the property is in compliance with Environment Article, § 6-815(a), Annotated Code of Maryland, within 30 days after the mailing of the notice by the insurer.

D. Lead hazard coverage remains in effect if the violation is corrected and the property is in compliance with Environment Article, § 6-815(a), Annotated Code of Maryland, within 30 days after the mailing of the notice by the insurer.

E. Lead hazard coverage may be canceled or not renewed, or a lead hazard exclusion may be reimposed, on the 31st day after the mailing of the notice by the insurer if the insured does not provide the insurer with the certification required under §C of this regulation.

F. The insurer shall include in its endorsement for lead hazard coverage that the lead hazard coverage may be canceled or not renewed pursuant to the conditions set forth in this regulation.

G. This regulation does not preclude the insurer from canceling a policy for any other reason as allowed by Insurance Article, Annotated Code of Maryland.

Md. Code Regs. 31.08.08.06