2013 Maryland Code
INSURANCE
§ 19-209 - Underwriting standard in homeowner's insurance policy

§19-209.

(a) (1) An insurer that issues a policy of homeowner’s insurance may not adopt an underwriting standard that requires a deductible that exceeds 5% of the “Coverage A - Dwelling Limit” of the policy in the case of a hurricane or other storm, unless:

(i) the insurer has filed the underwriting standard for approval by the Commissioner; and

(ii) the Commissioner has approved the underwriting standard in writing.

(2) The filing required by paragraph (1) of this subsection shall:

(i) be made at least 60 days before the insurer proposes to implement the underwriting standard in the State; and

(ii) include any information required by the Commissioner, including:

1. a copy of the underwriting standard the insurer proposes to implement;

2. the data relied on by the insurer in developing the underwriting standard; and

3. the date on which the insurer intends to implement the underwriting standard.

(3) An underwriting standard subject to this subsection may not take effect until 60 days after it is filed with the Commissioner.

(4) During the initial 60-day waiting period, the Commissioner may extend the waiting period for an additional period, not to exceed 60 days, by written notice to the insurer that the Commissioner needs additional time for consideration of the filing.

(5) A filing is deemed approved unless disapproved by the Commissioner during the waiting period or any extension of the waiting period.

(6) If the Commissioner finds that compliance with paragraph (3) or (4) of this subsection would result in impairment of the insurer or a significant financial loss to the insurer, the Commissioner may allow an insurer to implement its underwriting standard establishing a deductible at the percentage indicated in the filing within 60 days after the filing of the underwriting standard.

(7) An underwriting standard subject to this subsection shall comply with all applicable laws.

(b) If an insurer has adopted an underwriting standard that requires a deductible equal to a percentage of the “Coverage A - Dwelling Limit” of the policy in the case of a hurricane or other storm, the deductible may only be applicable beginning at the time the National Hurricane Center of the National Weather Service issues a hurricane warning for any part of the State where the insured’s home is located and ending 24 hours following the termination of the last hurricane warning issued for any part of the State in which the insured’s home is located.

(c) (1) An insurer that has adopted an underwriting standard that requires a deductible equal to a percentage of the “Coverage A - Dwelling Limit” of the policy in the case of a hurricane or other storm shall provide a policyholder with an annual statement explaining the manner in which the deductible is applied.

(2) The insurer shall send a copy of the form used to provide the notice required under paragraph (1) of this subsection to the Commissioner prior to its use.

(d) The Commissioner may adopt regulations to implement the provisions of this section.