1. A. An insurer may cancel a binder or policy during the 45-day underwriting period if the risk does not meet the underwriting standards of the insurer.

2. B. Cancellation for Reason Other than Nonpayment of Premium.

   1. (1) Except as provided in §B(2) of this regulation, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall:

      1. (a) Provide the insured with a written notice of cancellation that clearly and specifically states the insurer’s actual reason for the cancellation; and
      2. (b) Send the notice of cancellation to the named insured’s last known address by a first- class mail tracking method not less than 15 days before the effective date of the cancellation.

   2. (2) With respect to workers’ compensation insurance, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall:

      1. (a) Provide the insured with a written notice of cancellation that clearly and specifically states the insurer’s actual reason for the cancellation;
      2. (b) Send the notice of cancellation to the named insured’s last known address by a first-class mail tracking method not less than 15 days before the effective date of the cancellation; and
      3. (c) File a copy of the notice of cancellation with the designee of the Workers’ Compensation Commission.

3. C. Cancellation for Nonpayment of Premium.

   1. (1) An insurer that cancels a policy or binder under this regulation for nonpayment of premium shall:

      1. (a) Provide the insured with a written notice of cancellation that states the insurer’s intent to cancel the policy or binder for nonpayment of premium; and
      2. (b) Send the notice of cancellation to the named insured’s last known address by a first-class mail tracking method not less than 10 days before the effective date of the cancellation.
   2. (2) In the case of a policy or binder of workers’ compensation insurance, the insurer shall comply with the requirements of §C(1) of this regulation and shall file a copy of the notice of cancellation with the designee of the Workers’ Compensation Commission.

Authority: Insurance Article, §§2-109, 11-205, 11-306, 12-106, and 19-406, Annotated Code of Maryland

Effective date: June 9, 2014 (41:11 Md. R. 606)

Regulation .04 amended effective January 14, 2019 (46:1 Md. R. 13)

Regulation .05 amended effective January 14, 2019 (46:1 Md. R. 13)

Regulation .06B, C amended effective November 6, 2017 (44:22 Md. R. 1038)