The Maryland Insurance Administration published a bulletin reminding insurers of the mandatory liability coverages and consumer notification requirements for motor vehicle policies in the state.
§19-504 of the Insurance Article states that every motor vehicle liability policy issued, sold, or delivered in the state must provide at least the minimum amount required by Title 17 of the Transportation Article. Insurers may not issue policies that don't meet the minimum requirements.
Insurers may accommodate an insured's request to cancel liability coverage while maintaining comprehensive coverage, such as in instances of the insured being deployed or going on an extended travel period, but insurers must report if the vehicle falls below the minimum liability coverage requirement.
Insurers must inform consumers of their legal obligations prior to processing the request to cancel liability coverage and must remove the vehicle policy from the weekly book of business file it sends to the MVA.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.