2013 Maryland Code
INSURANCE
§ 19-214 - Limitation on number of claims made -- Notice.


MD Ins Code § 19-214 (2013) What's This?

§19-214.

(a) An insurer that offers homeowner’s insurance in the State shall provide a written notice to the insured at the time of application or issuance and at each renewal of the policy that states, in substantially similar language, that, in addition to the other allowable reasons for cancellation or refusal to renew under Maryland law:

(1) the insurer may cancel or refuse to renew coverage on the basis of the number of claims made by the policyholder within the preceding 3-year period; and

(2) the insurer may cancel or refuse to renew coverage on the basis of:

(i) three or more weather-related claims made within the preceding 3-year period;

(ii) one or more weather-related claims made within the preceding 3-year period if the insurer has provided written notice to the insured for reasonable or customary repairs or replacement specific to the insured’s premises or dwelling that:

1. the insured failed to make; and

2. if made, would have prevented the loss for which a claim was made; and

(iii) a change in the physical condition or contents of the premises that:

1. increases the hazard insured against; and

2. if present and known to the insurer before the issuance of the policy, would have caused the insurer to refuse to issue the policy.

(b) In order to support cancellation or refusal to renew under subsection (a)(2)(ii) of this section, the written notice:

(1) must refer to specific conditions known to the insurer concerning the insured’s specific premises or dwelling; and

(2) may not be a general notification of repairs or replacements common to that type of premises or dwelling.

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