Maryland Insurers Must Disclose Use of Claims History for All P/C Lines

Maryland’s insurance commissioner is advising insurers that if they consider claims history in deciding whether to cancel or non-renew coverage, they must disclose this practice at the inception of a policy and at each renewal for all lines of property/casualty insurance including commercial lines.

In a draft bulletin, Insurance Commissioner Marie Grant indicated that her department is aware of an “unofficial position” interpreting the claims history disclosure provision — § 27-501(n)(2) — of the state’s insurance law that says it applies only to private passenger motor vehicle insurance and homeowners insurance. But that, says the Maryland Insurance Administration (MIA), is an “incorrect interpretation of the law.”

The bulletin seeks to clarify MIA’s “plain-language interpretation” of the statute and its applicability to all property/casualty lines.

MIA said it has received inquiries from insurers, producers, and consumers regarding the applicability of § 27-501(n)(2), which reads as follows:

If an insurer considers claims history for purposes of canceling or refusing to renew coverage, the insurer shall disclose the practice to an insured at the inception of the policy and at each renewal.

MIA’s bulletin notes that while there are certain provisions of the § 27-501 statute that are expressly limited to specific lines or classes of coverage, the provision on disclosure of the use of claims history does not contain language that limits its application to insurers of any particular types or lines.

MIA notes that Maryland courts have held that a statute should be given its plain and ordinary meaning and that the legislature’s decision to include a condition or limitation in one section of statutory text, but decline to include it in another, can be taken as evidence that the exclusion was deliberate.

Accordingly, as a general matter, § 27-501 applies to property/casualty insurers of all types and lines, including commercial insurers, the MIA bulletin says.

MIA is inviting comments on the draft bulletin and its interpretation on or before October 13, 2025.

Topics Carriers Claims Property Casualty Maryland