SB 175 / Chapter 0057 (Acts 2020) – Responsibility for Master Policy Deductible Expense

LARRY HOGAN Governor BOYD K. RUTHERFORD Lt. Governor BULLETIN 20-31 Date: August 12, 2020 To: All Property & Casualty Insurers and Producers Re: SB 175 / Chapter 0057 (Acts 2020) – Responsibility for Master Policy Deductible Expense This Bulletin will remind all Property & Casualty insurers and producers that, effective October 1, 2020, the maximum amount of master policy deductible expense that a Council of Unit Owners, (“condominium association”) can hold an individual unit owner responsible for, when a loss originates within a unit, increases from $5,000 to $10,000. See Real Property Art., § 11-114 (g)(2)(iii)(1), Annotated Code of Maryland. The Maryland Insurance Administration notes that a unit owner’s policy, often referred to as an HO-6 policy, typically provides liability insurance for amounts the insured is legally obligated to pay as a result of a covered loss. Master policy deductible expenses up to $10,000 billed by the condominium association to the owner of a unit where a covered loss originates, is the legal obligation of the insured unit owner under an HO-6 policy. Please contact the Associate Commissioner for Property & Casualty, Robert Baron, with any questions concerning this Bulletin (Robert.Baron@Maryland.gov / 410.468.2353). KATHLEEN A. BIRRANE Commissioner By: _ Robert Baron, Associate Commissioner Property & Casualty KATHLEEN A. BIRRANE Commissioner JAY COON Deputy Commissioner 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov signature on original