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2017 Maryland Code
Insurance
Title 19 - Property and Casualty Insurance
Subtitle 2 - Homeowner's Insurance Policies
§ 19-209. Underwriting standard in homeowner's insurance policy.
Universal Citation: MD Ins Code § 19-209 (2017)
- (a) Deductible -- In general. --
- (1) Subject to subsections (b), (c), and (d) of this section, an insurer may issue a policy of homeowner's insurance that includes a deductible that is equal to a percentage of the "Coverage A -- Dwelling Limit" of the policy.
- (2) The insurer may:
- (i) require the deductible described in paragraph (1) of this subsection in a policy of the homeowner's insurance; or
- (ii) offer the deductible described in paragraph (1) of this subsection as an option to an applicant or insured.
- (b) Application of hurricane deductible. -- An insurer that has adopted an underwriting standard that requires a mandatory hurricane deductible equal to a percentage of the "Coverage A -- Dwelling Limit" of the policy shall apply the deductible:
- (1) only beginning at the time the National Hurricane Center of the National Weather Service issues a hurricane warning for any part of the State and ending 24 hours following the termination of the last hurricane warning issued for any part of the State; and
- (2) regardless of where the insured's home is located in the State.
- (c) Prohibition; requirements. --
- (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 unless the insurer has filed the underwriting standard with the Commissioner.
- (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:
- 1. a copy of the underwriting standard the insurer intends to implement; and
- 2. the date on which the insurer intends to implement the underwriting standard.
- (3) An underwriting standard subject to this subsection shall comply with all applicable laws.
- (d) Annual statement. --
- (1) An insurer that issues a policy of homeowner's insurance that includes a deductible that is equal to a percentage of the "Coverage A -- Dwelling Limit" of the policy or has adopted an underwriting standard that requires a mandatory hurricane deductible equal to a percentage of the "Coverage A -- Dwelling Limit" of the policy shall provide a policyholder with an annual statement explaining the manner in which the deductible is applied in accordance with ยง 19-209.1 of this subtitle.
- (2) The insurer shall send a copy of the form used to provide the statement required under paragraph (1) of this subsection to the Commissioner prior to its use.
- (e) Regulations. -- The Commissioner may adopt regulations to implement the provisions of this section.
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