Notice of Homeowners Insurance Deductibles

MARTIN O'MALLEY Governor ANTHONY G. BROWN Lt. Governor MARYLAND INSURANCE ADMINISTRATION THERESE M. GOLDSMITH Commissioner BETH SAMMIS KAREN STAKEM HORNIG Deputy Commissioners 200 St. Paul Place, Suite 2700 Baltimore, Maryland 21202 Direct Dial: 410-468-2029 Fax: 410-468-2430 Email: jhatchette@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 # Bulletin 11-20 Date: August 26, 2011 To: All Property & Casualty Insurers Re: Notice of Homeowners Insurance Deductibles The purpose of this Bulletin is to remind all Property & Casualty insurers issuing policies of homeowners insurance in Maryland with a deductible equal to a percentage of the Coverage A – Dwelling Unit for a hurricane or other storm of the requirements under §19-209(c) of the Insurance Article. Specifically, an insurer must provide: - The policyholder with an annual statement explaining the manner in which the deductible is applied; and - A copy of the form the insurer will use to provide the annual summary to its policyholders to the Insurance Commissioner prior to the form's use. Failure of a carrier before September 30, 2011 to: 1) Provide an explanation of how the deductible will be applied to the policyholder; or 2) Provide the Insurance Commissioner with a copy of the notice sent to the policyholder prior to its use; may result in disciplinary action. Insurers may file a copy of the form with the Insurance Commissioner by e-mailing scorbin@mdinsurance.state.md.us or mailing a copy of the form to: Maryland Insurance Administration, 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202, Attention: Shirley Corbin. No filing fees will be required. If you have any questions regarding this Bulletin, please contact Joy Hatchette, Associate Commissioner, Consumer Education and Advocacy by telephone at (410) 468-2029 or by e-mail at jhatchette@mdinsurance.state.md.us. Therese M. Goldsmith Commissioner By: SIGNATURE ON ORIGINAL Joy Hatchette, Associate Commissioner Consumer Education & Advocacy