1. A. Except as provided in §B of this regulation, a contract shall provide for a refund of premium upon request of the policyholder of pro rata unearned premium for any period during which the insured is not covered if:

   1. (1) Coverage terminates for an individual when the individual enters military service; or
   2. (2) The contract excludes any coverage while the individual is in military service.

2. B. The refund of premium requirement described in §A of this regulation does not apply to:

   1. (1) A group contract;
   2. (2) An individual contract that contains a military exclusion that applies only to loss resulting from military service while in the military service;

   3. (3) An individual life insurance contract that provides for automatic reinstatement:

      1. (a) Upon discharge from military service; or
      2. (b) Within a stated period not exceeding 6 months after discharge; or

   4. (4) An individual health insurance or nonprofit health service plan contract, if:

      1. (a) The contract is a noncancellable contract or a guaranteed renewable contract; and

      2. (b) The contract provides for automatic reinstatement:

         1. (i) Upon discharge from military service; or
         2. (ii) Within a stated period not exceeding 6 months after discharge.

Authority: Insurance Article, §§2-109, 8-433(a), 12-203(a)(1)(i) and (2) and (b), 13-110(a), 14-109(3)(iv), 14-110(a)(2)(iii)1, 14-126, 14-405(b)(8) and (9), 14-410(c), 15-904, and 16-504(e), Annotated Code of Maryland

Effective date: June 1, 1967

Amended effective May 1, 1968

Regulations .01 and .02I amended effective September 23, 1985 (12:19 Md. R. 1848)

Regulation .01 amended effective July 19, 1993 (20:14 Md. R. 1169)

Regulation .02A-1 adopted effective July 19, 1993 (20:14 Md. R. 1169)

Chapter recodified from COMAR 09.30.45 to COMAR 31.04.17 effective September 7, 1998 (25:18 Md. R. 1439)

Chapter revised effective April 25, 2005 (32:8 Md. R. 743)

Regulation .03M amended effective October 1, 2019 (46:17 Md. R. 727)

Regulation .03O adopted effective June 20, 2016 (43:12 Md. R. 668)

Regulation .13A amended effective October 3, 2011 (38:20 Md. R. 1205)