Maryland Insurance Section 27-602

      (a)      In this section, "applicant" means the person that seeks to purchase a renewal policy or to reinstate a canceled policy.

      (b)      (1)      This section applies to the Maryland Property Insurance Availability Act and to any other plans that may be instituted to ensure availability of insurance, unless expressly excluded.

            (2)      This section does not apply to policies of:

                  (i)      life insurance;

                  (ii)      health insurance;

                  (iii)      motor vehicle liability insurance; or

                  (iv)      surety insurance.

      (c)      (1)      Whenever an insurer cancels or refuses to renew a policy subject to this section, the insurer must provide to the applicant a statement of the actual reason for the cancellation or refusal to renew if the authorized premium has been tendered or paid.

            (2)      Paragraph (1) of this subsection applies to the cancellation of or refusal to renew a binder that has been in effect for at least 15 days or an actual policy that has been issued.

      (d)      A statement of actual reason is privileged and does not constitute grounds for an action against the insurer, its representatives, or another person that in good faith provides to the insurer information on which the statement is based.

      (e)      (1)      The reason given in the statement of actual reason must be sufficiently clear and specific so that an applicant of reasonable intelligence can identify the basis for the insurer's decision without making further inquiry.

            (2)      The use of generalized terms such as "personal habits", "physical handicap or disability", "living conditions", "poor morals", or "violation or accident record" does not meet the requirement of this subsection.