1. A. Diligent Search Not Required. In accordance with Insurance Article, §3-306.1(b)(1), Annotated Code of Maryland, a coverage that is listed in §C of this regulation may be placed with a surplus lines insurer without first conducting a diligent search as defined by Insurance Article, §3-306.1(a), Annotated Code of Maryland.
2. B. Affidavit Required. When a coverage that is listed in §C of this regulation is placed with a surplus lines insurer, the originating insurance producer shall execute and file an affidavit in accordance with Insurance Article, §3-307, Annotated Code of Maryland, and Regulation .03 of this chapter.

3. C. The surplus lines exportable list is as follows:

   1. (1) Amusement devices;
   2. (2) Animal mortality;
   3. (3) Armored cars;
   4. (4) Auto racing and auto race tracks;
   5. (5) Aviation—crop dusters;
   6. (6) Billiard halls;
   7. (7) Bowling alleys—property damage only;
   8. (8) Builders risk—all risks form (non-Bureau form);
   9. (9) Building demolition—including use of explosives;
   10. (10) Carnivals and circuses;
   11. (11) Child and adult care centers, convalescent homes, or community residence facilities;
   12. (12) Difference in condition—parasol;

   13. (13) Directors' and officers' liability for the following:

       1. (a) Coverages:

          1. (i) Employment practices liability;
          2. (ii) Entity liability coverage;
          3. (iii) Non-monetary damages;
          4. (iv) Liability for prior acts; or
          5. (v) Fiduciary liability; or

       2. (b) Classes:

          1. (i) Entities involved in initial public offerings of securities;
          2. (ii) Nonprofit organizations with negative fund balances;
          3. (iii) Entities in business for less than 3 years; or
          4. (iv) Financially distressed risks, including risks in pending or threatened bankruptcy, risks operating under Chapter 11 of the Bankruptcy Code, or risks unable to meet their financial obligations out of current assets;

   14. (14) Employment practices liability for the following coverages:

       1. (a) Family Medical Leave Act liability;
       2. (b) False imprisonment;
       3. (c) Intentional infliction of emotional distress;
       4. (d) Interference with contractual relations;
       5. (e) Negligent supervision or hiring;
       6. (f) Damages for breach of express contract;
       7. (g) Mergers;
       8. (h) Prior acts;
       9. (i) Punitive or liquidated damages; or
       10. (j) Prior knowledge;
   15. (15) Environmental impairment liability;
   16. (16) Excess automobile and motorcycle;
   17. (17) Exercise and health clubs;
   18. (18) Excess liability;
   19. (19) Exterminators;
   20. (20) False arrest liability;
   21. (21) Fire and general liability on buildings occupied as auction markets or farmers' markets;
   22. (22) Fire and general liability on buildings occupied as bars, restaurants, or night clubs, with or without entertainment;
   23. (23) Fireworks displays;
   24. (24) Flood and water damage — excess of federal flood insurance programs or primary coverage that is at least as broad as the coverage available through the federal flood insurance program;
   25. (25) Golf driving ranges;

   26. (26) Holdup, theft, and robbery coverages for:

       1. (a) Automated teller machines;
       2. (b) Check cashing businesses;
       3. (c) Electronics stores;
       4. (d) Taverns;
       5. (e) Package stores;
       6. (f) Carnivals;
       7. (g) Fairs; and
       8. (h) Exhibitions;
   27. (27) House movers and house wreckers;
   28. (28) Libel and slander;
   29. (29) Liquor liability;
   30. (30) Non-appearance, event cancellation, or weather insurance;

   31. (31) Physical damage:

       1. (a) Automobile physical damage for antique vehicles, high-value vehicles, kits, replicas, and custom-made vehicles; or
       2. (b) Vehicle physical damage for vehicles with a gross vehicle weight classified by the Insurance Services Office (ISO) as medium or heavier;
   32. (32) Pollutants—first and/or third-party coverages for existence or removal, or both, of a broad range of contaminants or pollutants;
   33. (33) Prize indemnification;
   34. (34) Professional liability—miscellaneous errors and omissions, except for those professions and occupations available in the admitted market, including architects, engineers, physicians, lawyers, travel agents, real estate brokers, and insurance producers;
   35. (35) Riding academies and pony rides (on location or away from premises);
   36. (36) Risks in bankruptcy;
   37. (37) Securities Exchange Act liability;
   38. (38) Short-term events;
   39. (39) Short-term homeshare business multi-peril;
   40. (40) Skating rinks—roller and ice;
   41. (41) Space satellites or craft;
   42. (42) Sporting events;
   43. (43) Stop loss and excess aggregate over self-insured retention (S.I.R.)—all lines not excluded pursuant to Insurance Article, §3-302, Annotated Code of Maryland;
   44. (44) Substandard fire risks not eligible for Fair Plan;
   45. (45) Swimming clubs, water skiing clubs, and swimming pools;
   46. (46) Tanning beds or salons;
   47. (47) Tattoo parlors;

   48. (48) Umbrella liability:

       1. (a) With no self-insured retention;
       2. (b) With defense costs outside policy limits; or
       3. (c) Written by the same non-admitted insurer that provides underlying liability insurance;
   49. (49) Vacant or unoccupied buildings; and
   50. (50) Warehousepersons' legal liability.

Authority: Insurance Article, §§2-109, 3-304, 3-306—3-308, 3-311—3-313, 3-316, 3-325(c), 9-301(f), 9-303(5), 9-401(j)(1) and (2), 9-405(b), and 27-216, Annotated Code of Maryland

Effective date: March 1, 1968

Amended effective January 1, 1971

Regulations .01—.12 repealed effective June 1, 1983 (10:9 Md. R. 790)

Regulations .01—.08 adopted effective June 1, 1983 (10:9 Md. R. 790)

Regulation .02 amended effective December 30, 1996 (23:26 Md. R. 1859)

Regulation .04 repealed effective December 30, 1996 (23:26 Md. R. 1859)

Regulation .05D amended effective December 30, 1996 (23:26 Md. R. 1859)

Appendix A repealed effective December 30, 1996 (23:26 Md. R. 1859)

Chapter recodified from COMAR 09.30.22 to COMAR 31.03.06 effective September 7, 1998 (25:18 Md. R. 1439)

Regulation .01-1 adopted effective January 7, 2002 (28:26 Md. R. 2275)

Regulation .01-1 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1938); amended permanently effective March 13, 2006 (33:5 Md. R. 523)

Regulation .01-1B amended effective February 20, 2012 (39:3 Md. R. 260)

Regulation .02 amended effective April 10, 2006 (33:7 Md. R. 675); February 20, 2012 (39:3 Md. R. 260); October 8, 2018 (45:20 Md. R. 920)

Regulation .03 amended as an emergency provision effective December 15, 2007 (34:1 Md. R. 30); amended permanently effective February 12, 2007 (34:3 Md. R. 303)

Regulation .03 amended effective February 20, 2012 (39:3 Md. R. 260)

Regulation .04 adopted effective January 7, 2002 (28:26 Md. R. 2275)

Regulation .04 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1938); amended permanently effective March 13, 2006 (33:5 Md. R. 523)

Regulation .05 amended effective February 20, 2012 (39:3 Md. R. 260)

Regulation .05A amended effective April 10, 2006 (33:7 Md. R. 675); October 2, 2017 (44:19 Md. R. 898)

Regulation .06 amended effective April 10, 2006 (33:7 Md. R. 675); February 20, 2012 (39:3 Md. R. 260)

Regulation .07A amended effective April 10, 2006 (33:7 Md. R. 675)

Regulation .09 adopted effective June 11, 2001 (28:11 Md. R. 1055)

Regulation .09 amended effective January 7, 2002 (28:26 Md. R. 2275)

Regulation .09 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1938); amended permanently effective March 13, 2006 (33:5 Md. R. 523)

Regulation .09 amended effective May 18, 2016 (43:6 Md. R. 412); June 18, 2018 (45:12 Md. R. 621)

Regulation .09C, D amended effective April 10, 2006 (33:7 Md. R. 675)

Regulation .10 adopted as an emergency provision effective June 29, 1999 (26:15 Md. R. 1146); emergency status expired December 25, 1999

Regulation .10 adopted effective May 1, 2000 (27:8 Md. R. 806)

Regulation .10B, C amended effective April 10, 2006 (33:7 Md. R. 675)

Regulation .10C amended effective October 20, 2008 (35:21 Md. R. 1828); February 20, 2012 (39:3 Md. R. 260); February 27, 2017 (44:4 Md. R. 255); May 18, 2020 (47:10 Md. R. 520)

Regulation .11 adopted effective January 7, 2002 (28:26 Md. R. 2275)

Regulation .11 amended as an emergency provision effective November 3, 2005 (32:25 Md. R. 1938); amended permanently effective March 13, 2006 (33:5 Md. R. 523)

Regulation .11 amended effective February 20, 2012 (39:3 Md. R. 260)