Sec. 31.08.03.06. Procedures and Requirements Regarding an Increase in Premium

A. Scope.

(1) Except as provided in §A(2) of this regulation, this regulation applies to any increase in premium by an insurer.

(2) This regulation does not apply to an increase in premium due to:

(a) A general increase in premiums filed with the Commissioner if the increase in premium of the insured does not result from a reclassification of the insured;

(b) The addition of a motor vehicle to a policy;

(c) A change of motor vehicle covered by a policy;

(d) A change in vehicle usage that results in a change in driver class;

(e) A change of territory;

(f) A change in the age, sex, or marital status of an insured.

(g) An increase in coverage limits requested by the insured;

(h) The addition of a driver;

(i) The removal of a multi-policy discount;

(j) Any request by an insured that results in a change in coverage, decrease in deductible, or other change to a policy;

(k) The removal or reduction of a discount if the discount is not removed or reduced wholly or partly due to:

(i) An accident;

(ii) A violation of the Maryland Vehicle Law or the vehicle law of another state;

(iii) The claims history of the insured; or

(iv) A retiering of the insured;

(l) The change or modification of a rating symbol;

(m) The recalculation of a premium by an insurer during the 45-day underwriting period in accordance with Insurance Article, §12-106(d)(2) and (3), Annotated Code of Maryland; or

(n) Any other cause for an increase in premium for which the Commissioner waives the notice requirement.

B. Notice.

(1) Before an insurer may increase a premium, the insurer shall comply with the notice requirements of Insurance Article, §27-614, Annotated Code of Maryland.

(2) The insurer shall send a notice of premium increase to its insured in duplicate by certificate of mail.

C. Form of Notice.

(1) If an increase in premium is 15 percent or less for an entire policy, the insurer shall use MIA Form 1006-A in Regulation .07 of this chapter or a substantially similar form.

(2) If an increase in premium is greater than 15 percent for an entire policy, the insurer shall use MIA Form 1006-B in Regulation .08 of this chapter or a substantially similar form.

(3) If an insurer uses a form other than MIA Form 1006-A or MIA Form 1006-B, the insurer shall submit the form to the Commissioner for approval before the insurer may use the form.

(4) In order to be considered substantially similar to MIA Form 1006-A or MIA Form 1006-B, a form shall:

(a) At a minimum, contain the same information that is contained in MIA Form 1006-A or MIA Form 1006-B;

(b) Be printed in 12-point word processing point size in Arial, Universal, or another font that is as large or larger in size and spacing; and

(c) Contain the language of the "Right to Protest" section from MIA Form 1006-A or MIA Form 1006-B starting on the first page of the form.