Application of Percentage Deductible Under § 19-209

BULLETIN 12-24 Date: October 30, 2012 To: All Admitted Property and Casualty Insurers, the Joint Insurance Association (JIA), and Insurance Producers Re: Application of Percentage Deductible Under § 19-209 This bulletin serves to advise Maryland’s admitted Property & Casualty insurance carriers that deductibles equal to a percentage of the "Coverage A -- Dwelling Limit" of a homeowners policy in the case of a hurricane or other storm, (percentage deductible) do not apply to the weather event that impacted Maryland beginning on October 29, 2012.1 Section 19- 209(b) provides, Applicability of deductible. -- If an insurer has adopted an underwriting standard that requires a deductible equal to a percentage of the "Coverage A -- Dwelling Limit" of the policy in the case of a hurricane or other storm, the deductible may only be applicable beginning at the time the National Hurricane Center of the National Weather Service issues a hurricane warning for any part of the State where the insured's home is located and ending 24 hours following the termination of the last hurricane warning issued for any part of the State in which the insured's home is located. The National Hurricane Center of the National Weather Service did not issue a hurricane warning for the State of Maryland. If you have any question about this Bulletin, please contact Joy Hatchette, Associate Commissioner, Consumer Education & Advocacy, at (410) 468-2029 or at jhatchette@mdinsurance.state.md.us. By: Signature on file with original_____ Therese M. Goldsmith Insurance Commissioner 1 This Bulletin supersedes Bulletin No. 11-25, which was issued on September 1, 2011 after Hurricane Irene. THERESE M. GOLDSMITH Commissioner KAREN STAKEM HORNIG Deputy Commissioner MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 410-468-2007 Fax: 410-468-2020 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us