Prohibition on Moratoriums for Writing Property and Casualty Insurance During Approaching Hurricanes or Tropical Storms

MARTIN O'MALLEY Governor ANTHONY G. BROWN Lt. Governor [LOGO] INSURANCE ADMINISTRATION RALPH S. TYLER Commissioner BETH SAMMIS Deputy Commissioner 525 St. Paul Place, Baltimore, Maryland 21202-2272 Direct Dial: 410-468-2010 Fax: 410-468-2020 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us # BULLETIN 08-21 To: All Property & Casualty Insurance Companies, All Property & Casualty Producers, and All Interested Parties Re: Prohibition on Moratoriums for Writing Property & Casualty Insurance During Approaching Hurricanes or Tropical Storms Date: September 5, 2008 As the hurricane season begins to potentially impact Maryland, the Insurance Administration wants to remind insurers and producers of their obligations under Maryland's insurance law. If the company has a rating plan filed with the Administration and a risk meets its underwriting guidelines the carrier may not refuse to underwrite or renew that risk, absent a §19-107 filing or a specific exception in its rating manual. Today, the Maryland Insurance Administration was advised by certain insurers that they were considering a moratorium on the writing of new business, the addition of endorsements for additional coverages, or other policy changes as a result of an approaching hurricane and/or tropical storm. In the absence of an approved rating plan allowing such action, a moratorium is prohibited. See MD. CODE ANN., INS. ART., §§ 19-107, 27-501; Lumberman's Mut. Cas. v. Ins. Comm'r., 302 Md. 248 (1985). If you have any questions about this Bulletin, please contact Karen Stakem Hornig, Associate Deputy Commissioner, by telephone at (410) 468-2010 e-mail at khornig@mdinsurance.state.md.us or David Diehl, Chief Administrator, Property & Casualty, by telephone at (410) 468-2320 or by e-mail at ddiehl@mdinsurance.state.md.us. Ralph S. Tyler Insurance Commissioner ©