Draft Proposed Regulations COMAR 31.08.15 - Underwriting Period - Discovery of a Material Risk Factor

The answer to the first three questions is no, because the statute does not provide for any exceptions to the requirements that (1) if a material risk factor is discovered, the insurer shall recalculate the premium; and (2) an insurer that recalculates the premium shall provide a written notice to the insured. See Ins. Art. §§ 12-106(d)(2)-(3) (emphasis added). Therefore, an insurer must recalculate the premium, send notice, and charge and collect the additional premium. Please note that any filed rating rules with respect to additional premium waivers are inapplicable to premiums that are recalculated during the underwriting period and should be amended to that effect. The answer to the fourth question is addressed in the draft proposed regulations. Written comments will be accepted for 30 days from the date of the Bulletin’s issuance. All comments should be addressed to Geoffrey Cabin, Director of P & C Rates and Forms at Geoffrey.cabin@maryland.gov. If there are any questions, Mr. Cabin can be reached at 410-468- 2310. Therese M. Goldsmith Insurance Commissioner By: _ Sandra Castagna Associate Commissioner Property and Casualty Signature on original